SBI directed to compensate customer for ‘deficiency in service'
The Consumer Disputes Redressal Commission, Karimnagar, was dealing with a a complaint filed one Gaddam Shivaramakrishna, 27, who claimed that the bank had created a ₹1,200 overdraft account in his name without his consent. Later a technical error related to a merchant transaction in 2019 took place which led to the escalation of the issue. Despite clearing dues, his CIBIL report reflected that he had an active loan. This, he said, affected him negatively.
For their part, the SBI admitted to a merchant transaction of ₹1,200 in April 2019 that was reversed. This led to the bank opening an overdraft account for the purpose of adjustment. They contended that the complainant was informed orally and through text message. Later, the account was closed after full repayment. The bank also submitted a CIBIL report that indicated the status of the loan was updated.
The Commission found that the creation of the overdraft account was not wrong. They cited RBI guidelines that permit such a move in cases of failed ATM transactions. However, it held the bank had not placed on record concrete evidence of the customer being informed about the account's creation. This, the Commission concluded , amounted deficiency in service.
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