Now Reading: Kerala HC orders bank to pay Rs 5 lakh with 12% interest for delayed FD
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Kerala HC orders bank to pay Rs 5 lakh with 12% interest for delayed FD
Kerala HC orders bank to pay Rs 5 lakh with 12% interest for delayed FD
Livemint reports that the Kerala High Court has upheld a consumer commission order directing a bank to repay Rs 5 lakh with 12% interest and Rs 10,000 compensation for delaying a matured…
The Story in Brief
Livemint reports that the Kerala High Court has upheld a consumer commission order directing a bank to repay Rs 5 lakh with 12% interest and Rs 10,000 compensation for delaying a matured fixed deposit. The depositor, Sethumadhavan from Thrissur, had invested in the FD in 2015 and the bank refused repayment citing technical reasons. The court rejected the bank's argument that it was a co-operative society outside consumer forum jurisdiction, stating that the Consumer Protection Act provides an additional remedy. Depositors facing similar delays can approach the RBI Ombudsman or consumer forums, but interest on overdue deposits is normally at the savings rate, not 12%.
The Indian Opinion
This ruling is a useful reminder but also a potential source of misplaced hope. Some depositors may now assume every delayed FD automatically earns 12% interest, which is not the case, that rate was specific to this dispute. The lazy narrative that co-operative banks are beyond consumer law has been rightly rejected. The real test lies ahead: will the RBI now update its overdue deposit guidelines to ensure consistent, predictable compensation for depositors, or will each case still require a costly legal battle?
Source: livemint.com
This story was synthesised by AI from the source linked above.
