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Forum orders bank to pay compensation
Times of India, July 11, 2019

Visakhapatnam: A district consumer disputes redressal forum-II in East Godavari (Rajahmundry) has directed Corporation Bank to compensate a complainant by paying Rs. 10,000 and Rs. 2,000 litigation fee for sending a cheque was issued by the account holder to another party, despite sufficient balance in his bank account.

The order was passed following a complaint from the account holder, BVS Rao, authorized by Sri Vinayaka Cycle Agency at Rajahmundry, citing deficiency in service and causing loss of reputation in business.

As per the complaint, Rap was an account holder of Corporation Bank in Rajahmundry and he had deposited Rs. 1.10 lakh in his current account on March 12, 2018. But, only Rs 49,000 was credited to his account. Meanwhile, Rao who wrote a cheque to Rider Well Company in Delhi was was notified that he had insufficient money. Moreover, Rs. 167 was deducted as dishonor charges. Rao then approached the authorities of the bank on March 13.

The Bank in his re[ly said that due to software problem, the total deposited amount could not be credited into Rao’s account. The bank’s defence was that the complaint is not maintainable and the process payment of cheques is done by machines neither the staff nor officers have any control over such process.

After examining the evidences, the consumer forum observed that the bank has been negligent.

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