A Hyderabad consumer commission found SBI deficient in service for failing to alert a retired scientist that his Rs 15 lakh fixed deposit had matured or explain the extension option.
The Hyderabad District Consumer Disputes Redressal Commission has ordered the State Bank of India to pay a retired scientist more than Rs 15.35 lakh after finding that the lender failed to alert him when his fixed deposit matured and did not tell him he could extend it. The commission said the bank’s handling of the account amounted to a deficiency in service, after the customer discovered that SBI’s online portal showed a fresh maturity date in December 2028 and an interest rate of zero per cent, even though the deposit had originally matured in December 2023.
According to the complaint, the man placed Rs 15 lakh from his retirement savings into a fixed deposit in December 2018, expecting it to serve as a back-up for old-age expenses and emergencies. He said he assumed the account would be renewed automatically if no action was taken at maturity, but instead found that the money had not been returned to his savings account. The commission, led by president M Ramgopal Reddy with D Sreedevi and J Shyamala, said on 7 October that SBI had failed to intimate him about the maturity date and had also not informed him about the option to extend the deposit for another term.
SBI argued that, under the rules of the senior citizen savings scheme, it was not obliged to send mandatory maturity reminders by SMS, email or other means, although it said it generally sends notices when customers’ contact details are up to date. The bank also described the online display of a 2028 maturity date and 0 per cent interest as a technical glitch that did not change the real status of the account. The commission did not accept that defence. It directed SBI to pay the deposit amount with 8.5 per cent interest up to the original maturity date and savings account interest thereafter until payment, along with Rs 25,000 for inconvenience and mental anguish and Rs 10,000 in costs.
The ruling adds to a broader pattern of consumer forum decisions in which banks have been found liable for lapses involving fixed deposits or other customer assets. In a separate case reported by LiveLaw, the Panipat District Consumer Disputes Redressal Commission held Axis Bank responsible for not releasing a fixed deposit after maturity. Consumer forums have also previously censured SBI in other disputes, including matters involving alleged failure to pay dues on deposits and other service lapses, reflecting the scrutiny lenders face when they leave customers’ money tied up without clear notice.
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