Bank told to pay penalty for delayed reversal of wrong debit

4) Charging higher rate of interest linked to BPLR on housing loan : A complainant who had availed himself of a housing loan from the bank alleged that the bank was charging higher rate of interest than agreed upon.

The bank forwarded a copy of agreement letter signed/accepted by the complainant wherein the complainant had agreed to floating rate of interest, in terms of which the rate of interest was changed with changes in the PLR of the bank.

The bank also advised that changes in rate of interest were displayed in the branch and through its Website from time to time. The BO directed that as the complainant had agreed to the terms and conditions which provided for floating rate of interest, bank's action of charging the higher rate of interest was in order.

5) Failure to carry out instructions of the borrower: A complainant had availed himself of home loan from a bank and had given post dated cheques (PDCs) drawn on a co-operative bank which was later placed under moratorium.

No sooner the complainant came to know about this, he issued fresh PDCs drawn on another bank to avoid any default in payment. The complainant issued written instructions to the bank not to present the PDCs drawn on the co-operative bank and to return the same to him.

Despite acknowledging the letter, the bank presented the cheques drawn on co-operative bank and levied cheque return charges, penal charges and also issued legal notices to the complainant.

The BO observed that the bank had not followed the minimum standards of banking service. The bank accepted the error and reversed the cheque return charges and penal charges levied on his home loan account. The BO directed the bank to suitably compensate the complainant who was a senior citizen. The bank paid Rs 7,750 as compensation.

6) Dispute over failed ATM transaction: One account holder complained about wrong debit by the bank for failed ATM transaction. On taking up the matter, the bank submitted that as reported by the acquirer bank, the transaction was successful. The bank also submitted an Electronic Journal (EJ) copy indicating ‘000' code for the successful transaction. Complainant insisted that he had not received the money though his account was debited.

Later on, the issuing bank informed the credit of the disputed amount, as they had received the fund from the acquirer bank. The bank was advised to compensate the complainant for the delay in reversal of the disputed ATM transaction.

7) ATM withdrawal : Penalty for delayed reversal of wrong debit: The complainant maintained an account with AB Bank. He withdrew an amount of Rs 500 from the ATM of DH bank on July 28, 2009. The cash dispensed by the machine was only Rs 400. However, his account was debited by Rs 500. The amount of Rs 100 was credited back to his account only on January 27, 2010.

Despite lodging the complaint immediately no penalty was paid to him according to the instructions issued by DPSS vide its circular dated July 17, 2009.

Since the bank had delayed in affording the credit to the complainant's account by more than five months, the BO directed the bank to pay the penalty amount of Rs 16,200 for the delayed period.

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