Top News

Bank Refund Policy: Due to a small mistake, an amount of ₹ 52,659 went to the wrong bank account. The bank did not pay attention to the complaint, after which the matter reached the consumer court. The court ordered both the banks to return the amount, pay 10% interest and pay compensation for mental agony.

Bank Refund Policy: 69-year-old Vanga Krishna Reddy of Peerjadiguda (Telangana) thought that the renewal of health insurance would be done in two clicks. But a small mistake made him run around banks and courts for two years. A typing mistake of one digit stuck his ₹ 52,659 and the legal battle began.

One wrong transfer, two payments and zero responsibility

In June 2023, Krishna Reddy deposited the health insurance premium from his bank's mobile app. The last date of the policy was just three days away. In a hurry, he typed a digit wrong in the beneficiary's account number. The money went to the wrong account and did not reach the insurance company. As soon as he understood this mistake, he immediately made a payment of ₹ 52,659 again with the correct details so that the policy remains active. But the first transaction got stuck in a digital vortex.

The bank said - "Let's see" (Bank Refund Policy)

As soon as the mistake was caught, Krishna Reddy informed his bank. The bank said that they would look into the matter. An initial response was received, and the bank sent a chargeback request to the receiving bank. But the reply from there was "Customer could not be contacted, so debit confirmation could not be received." Meaning, the bank could not even talk to the person who received the money by mistake. Disappointed, Reddy reached the Ranga Reddy District Consumer Disputes Redressal Commission (Consumer Court) in May 2024. The hearing started there. His bank said that we followed the entire process, it was not our fault. The receiving bank did not even appear.

The court pronounced the verdict – “Both banks are responsible”

The commission held both the banks guilty of “deficiency in service”. The court said that the customer made a mistake, but it was the responsibility of the banks to stop the transaction or alert if the account number and name did not match. In this consumer case, the court took a strict stand and ordered that both the banks together return the entire amount of ₹ 52,659 to the consumer.

Along with this, the court also directed that 10% annual interest should also be paid on this amount. Apart from this, keeping in mind the mental agony and trouble caused to the consumer, the court also ordered to pay separate compensation and court expenses (court fees).

Disclaimer: India Employment News does not give any suggestion for any purchase or sale related to the stock market. We publish market related analysis quoting market experts and brokerage companies. But take market related decisions only after consulting certified experts.