Navi Mumbai: Bank ordered to pay 5k for cutting Rs 60 from bank a/c without consent

Anuj Kumar and his mother Rama Gupta in front of the Canara Bank branch that deducted R60 from their account without informing them. Pic/Rajesh Gupta

A senior citizen and her son have received compensation of Rs 5,000 from Canara Bank following an order issued by RBI. The bank's Kopar Khairane branch had deducted Rs 60 from their joint account for not maintaining the minimum balance, without informing them. As per the order they were also returned the Rs 60.

Rama Gupta, 63, a resident of Kopar Khairane, said they had not opted for the Rs 15 SMS value-added services, which resulted in them not receiving any notifications about deductions. As per RBI rules, the bank is required to inform customers before deducting any amount from their account. On August 14, following RBI's direction, Gupta and her son, Anuj Kumar, 35, received the compensation for the deductions by the bank as charges for not maintaining a minimum balance of Rs 1,000 in their account.

The case

On March 2, 2023, Canara Bank deducted Rs 30 from their savings account, and on April 2, 2023, it deducted another R30 for not maintaining the minimum balance. Rama Gupta gave the bank manager a complaint about the same on April 5, 2023. During a subsequent visit, she claimed the bank officials verbally informed her that they would not refund the money as she had not activated the SMS value-added services, which cost R15 to provide transaction notifications.

Rama Gupta and Anuj complained to the Canara Bank Circle Office at BKC on May 10. The Assistant General Manager Kanakambaran RR, replied on May 19 stating the Guptas would not receive a refund as they had not activated SMS value-added services. On May 20, Rama Gupta and Anuj appealed to the Circle Office again. However, on May 29, the Circle Officer closed the case, stating that they would not receive any refund.

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RBI order

Subsequently, the Guptas complained to the RBI on June 12, regarding the bank's failure to inform them about the deduction. After investigating the matter and checking all transactions, RBI found that Canara Bank did not send any SMS or email notifications to the Gupta account holders regarding the deduction. Additionally, the bank did not alert the Guptas about the low balance and the requirement to maintain a minimum balance.

Speaking to mid-day, Anuj expressed gratitude to the RBI for helping them recover their deducted amount of Rs 60. He said, "We had requested Canara Bank to refund the money as the bank had failed to inform or alert us about the minimum balance requirement. The bank bears the responsibility of notifying the account holders regarding deductions. I thank the RBI for assisting us in recovering our deducted money and for the compensation."

RBI has directed Canara Bank to refund the R60 and provide a compensation of Rs 5,000 to the Guptas. mid-day possesses a copy of the RBI order given to the Guptas. Canara Bank officials refused to comment.