Patna: The District Consumer Disputes Redressal Commission, Patna, has directed the State Bank of India (SBI) to pay the maturity amount of seven fixed deposits belonging to a deceased account holder to her lawful successor. The total value of the seven deposits was Rs 7,52,142.
In its order, the Commission also directed the bank to pay Rs 10,000 as compensation for the mental distress and physical inconvenience caused to the complainant, along with Rs 5,000 towards litigation expenses.
The bank has been asked to comply with all the directions within 120 days of receiving the order. The decision aims to protect consumer rights and strengthen accountability in banking services.
SBI Had Sought Succession Certificate for Fixed Deposit Claims
According to the case details, the complainant’s daughter, Divya Ranjan, had opened an account with the State Bank of India under the Atal Pension Yojana and made seven fixed deposits.
The combined value of these deposits was Rs 7,52,142. She passed away on January 9, 2020, following which the complainant approached the bank and requested the release of the deposited amount.
However, the bank reportedly declined to process the payment on the grounds that no nominee had been registered for the fixed deposits. It asked the complainant to submit a succession certificate to establish the right to claim the funds.
The complainant subsequently approached the District Consumer Disputes Redressal Commission, Patna, seeking relief over the delay and difficulties faced in receiving the deposit proceeds.
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Commission Examines SBI’s Core Banking System Records
During the hearing, the Commission examined the issue concerning the nomination status recorded in the bank’s Core Banking System (CBS).
It observed that the letter ‘Y’ appearing against the nomination status in the CBS records involved a technical matter, the interpretation of which required expert assistance.
The Commission clarified that claims relating to the fixed deposits of a deceased account holder should be dealt with in accordance with the Reserve Bank of India’s guidelines on the settlement of claims involving deceased depositors and the provisions of the Hindu Succession Act, 1956.
SBI Directed to Release Seven Fixed Deposit Maturity Amounts
The Commission directed SBI to release the maturity proceeds of all seven fixed deposits to the complainant after the necessary formalities have been completed.
It further instructed the bank not to cause any unnecessary delay in settling the claim.
Apart from the deposit amount of Rs 7,52,142, the bank has been ordered to pay:
- Rs 10,000 as compensation for mental distress and physical inconvenience.
- Rs 5,000 towards litigation expenses.
The Commission has given the bank 120 days from the receipt of the order to ensure compliance with all the directions.
Consumer Commission Order Highlights Accountability in Banking Services
The decision is significant in the context of consumer protection and the timely settlement of claims involving deceased bank account holders.
It reinforces the importance of following applicable banking guidelines and legal provisions while processing claims by the lawful successors of deceased depositors.
The order also highlights the responsibility of banks to provide proper and timely services and address consumer grievances without causing unnecessary hardship.
Order Passed by Patna District Consumer Commission on October 27
The order was passed on October 27, 2026, by a bench of the District Consumer Disputes Redressal Commission, Patna, comprising President Prem Ranjan Mishra and Member Rajneesh Kumar.
The ruling is being viewed as an important step towards protecting consumer rights and ensuring accountability in banking services.
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