How SBI’s failure to inform a retired scientist about FD maturity cost it ₹15.35 lakh; details of the case here
The Hyderabad district consumer disputes redressal commission has directed the State Bank of India (SBI) to pay ₹15.35 lakh to a retired scientist as it failed to inform him about the maturity of his fixed deposit and the option to extend it.
The judgement, pronounced on October 7, followed a complaint filed by a man who claimed that he had invested ₹15 lakh in a fixed deposit to secure his finances in old age and meet any unforeseen expenses.
The deposit matured in December 2023, but he later discovered that SBI’s online portal showed a new maturity date of December 2028, with the interest rate listed as zero per cent, according to a report by the Indian Express.
The complainant said he had invested ₹15 lakh from his retirement benefits in a fixed deposit receipt (FDR) on December 13, 2018, under the senior citizen savings scheme, at an interest rate of 8.5% per annum.
The deposit was due to mature on December 12, 2023, with an option to renew it for another five years. However, he alleged that SBI neither informed him about the maturity nor transferred the due amount to his savings bank account. He said he believed the deposit might have been renewed automatically.
When the retiree checked the bank's portal, the new maturity date was displayed as December 12, 2028 and the interest rate as zero per cent.
He subsequently approached the bank, where he was told that the scheme belongs to the Government of India and that no interest could be paid after the maturity date. However, the deposit amount had also not been returned to him.
SBI also allegedly told him that he could renew the deposit by applying within one year of maturity. The complainant argued that the bank had neither disclosed the scheme’s government-run status at the time of investment nor informed him about the maturity date, as per the news report.
Aggrieved, he approached the commission alleging deficiency in service and unfair trade practice on the part of SBI.
SBI's legal representative argued that upon maturity on December 12, 2023, in the absence of any instructions from the complainant, the fixed deposit amount was retained in the account as per scheme guidelines.
The bank further denied any obligation under the senior citizen savings scheme rules to mandatorily inform the depositor about maturity via SMS, email, or other means, though it added that the bank has a practice of sending reminders where contact details are updated.
SBI attributed the portal’s display of a revised maturity date of December 12, 2028 with zero per cent interest to a technical glitch, saying it did not alter the actual status of the account.
After examining the case, the commission directed SBI to repay the ₹15 lakh deposit with 8.5% interest until the contractual maturity date and interest at the applicable savings deposit rate until payment.
The bank was also ordered to pay ₹25,000 in compensation for inconvenience and mental agony, along with ₹10,000 towards litigation costs.
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