The National Consumer Commission has levied a further cost of ₹10,000 on Bank of India after dismissing its appeal. The Bank had approached the commission challenging subordinate commissions' orders directing the Bank to pay for mental agony and litigation cost that its customer went through when money debited post failed transaction was not re-credited to the account.
The order dated June 21 was passed by Justice Ram Surat Ram Maurya, presiding member of the National Consumer Disputes Redressal Commission.
It was passed on an appeal by Bank of India, BKC against order passed by district consumer commission, which had ruled in favour of the complainant, Ganesh Meshram.
Bank is liable to re-credit amount
Meshram had tried withdrawing money from his account. Although ₹500 got debited, he did not get the money. The incident happened in May 2009. When he approached the bank, the money was not credited back to his account until September of 2012. The district consumer commission stated that an RBI circular of July 2009 requires that if the digital transaction fails then the bank is responsible to re-credit that amount within a period of 12 days. However, as that had not happened, the district commission directed ₹100 per day penalty besides giving ₹2,000 towards mental agony and litigation cost to the complainant.
Bank challenged order at state commission
Aggrieved by this, the Bank challenged the order at the state commission, which dismissed its appeal. At the National Commission, the bank argued that the RBI circular cannot be applied retrospectively because it was the ATM problem occurred in May 2009.
The commission said it "failed to understand" the argument put forward by the bank because despite the circular, the money was re-credited after more than two years. It said that the petition of the bank is being dismissed with a cost that will have to be given to the customer within 30 days.
