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SBI faults customer for not cashing cheque, ordered to pay compensation

By Lokmat English Desk | Updated: March 23, 2024 19:25 IST

Bank ordered to pay Rs 3000 as compensation within 45 daysChhatrapati Sambhajinagar: The District Consumer Disputes Redressal Commission ...

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Bank ordered to pay Rs 3000 as compensation within 45 days

Chhatrapati Sambhajinagar: The District Consumer Disputes Redressal Commission has directed State Bank of India (SBI) to compensate a customer for not honoring his cheque despite sufficient funds in the account.

Advocate Pandit R Jadhav, an SBI account holder, issued a cheque for Rs 10 lakh to Dashrath Unde. However, the bank refused to cash the cheque even though Jadhav's account balance exceeded Rs 11 lakh. SBI also deducted a Rs 177 non-cashing fee without informing Jadhav.

Conflicting statements cited by bank

SBI claimed they followed RBI guidelines for high-value cheque by contacting Jadhav to verify the transaction. According to the bank, Jadhav initially denied issuing the cheque, fearing fraud. Later on the same day, he reportedly reversed his stance and authorized the cheque, which was then cleared. However, SBI could not produce documentation to support Jadhav's initial denial.

Commission finds deficiency in service

The commission, comprised of chairperson Shilpa Dolharkar, members Ganesh Kumar Selukar and Janhvi Bhideruled in Jadhav's favor, highlighting the bank's contradictory actions and lack of clear communication. They concluded that SBI had failed to provide proper service, causing inconvenience to the customer. The commission ordered SBI to reimburse the Rs 177 non-cashing fee and pay Rs 3000 as compensation for the inconvenience caused. If SBI fails to comply within 45 days of receiving the order, they will be obligated to pay an additional nine percent interest on both amounts.

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