BEFORE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAHIBZADA AJIT SINGH NAGAR (MOHALI)

                                  Consumer Complaint No.458 of 2015

                                 Date of institution:          10.09.2015

                                              Date of Decision:            22.07.2016

Ravinder Kaur resident of House No.12, Kaimbala Road, Kansal, Punjab.

                                     ……..Complainant

                                        Versus

1.     Axis Bank through its Manager, SCF 113-114, Phase-VII, Mohali, Punjab.

2.     Axis Bank through its Managing Director, Registered Branch Office, Axis Bank Limited ‘Trishul’ Third Floor, Opp. Samartheshwar Temple, Near Law Garden, Ellisbridge, Ahmedabad 380006.

                                                                ………. Opposite Parties

Complaint under Section 12 of the

Consumer Protection Act, 1986.

CORAM

Mrs. Madhu. P. Singh, President.

Mrs. R.K. Aulakh, Member.

Present:    Shri TPS Khanna, counsel for the complainant.

Shri Rajeev Bhardwaj, counsel for the OPs.

(Mrs. Madhu P. Singh, President)

ORDER

                The complainant has filed the present complaint seeking following direction to the Opposite Parties (for short ‘the OPs’) to:

(a)    to restore the account of the complainant.

(b)    to refund/rectify the charges/deductions made from her account.

(c)    to pay her Rs.50,000/- for mental agony and harassment.

(d)    to pay her Rs.21,000/- as litigation charges.

                The case of the complainant is that she alongwith her father had opened a Saving Bank account No.085010100132114 with customer ID No.085017017 with the OPs.  Debit card No.4688-0508-5012-9772 was also issued by the OPs. The account was being operated jointly by the complainant and her father. In April, 2015 the complainant visited OP No.1 for re-issuance of debit card as she was facing problem with the earlier issued debit card which was valid till 12/2018.  OP No.1 denied issuance of fresh debit card to the complainant on the ground that her account has been closed by the OPs on 03.04.2015.  The OPs also did not regularly provide to the complainant the statement of account.  However, the same was made available to the complainant on 03.04.2015 at her request. The non supply of regular statement of account without demand is in contravention to the guidelines of the Reserve Bank of India.

                After perusing the statement of accounts, the complainant came to know that OPs were charging unnecessary charges from the account without any prior intimation to the complainant.  Due to charging of such charges, the balance in the account of the complainant was reduced to zero resulting to no balance account and the OPs of their own placed the account of the complainant as dormant account in their records.  The OPs failed to provide any reasonable justification for deduction of such charges. Once the complainant learnt about the status of her account being dormant account, the complainant made oral request to the OPs for restoration of the account and the same has been denied without any reason The complainant got issued a legal notice to the OPs  and in response thereto but the OPs have failed to resolve the grievance of the complainant  with a vague reason that once an account is closed the same cannot be restored again. The complainant again sent another legal notice dated 10.07.2015 but the OPs have not bothered to reply to the same. Therefore, the complainant has filed the present complaint against the OPs by alleging unfair trade practice and deficiency in service on the part of the OPs.

2.             Upon notice the OPs appeared and filed written statement. They have pleaded that the account of the complainant has already been closed on 03.04.2015 being non operative account. The account of lastly operated on 09.09.2013 and after that there is no single transaction done in the said account. Service charges were deducted by the OPs as per circular of the bank. At the time of opening of account the complainant has admitted all terms and conditions mentioned in the account opening form and the complainant after accepting the same signed the form and one copy of the form has already been taken by the complainant.  It is one of the conditions that the OPs have absolute discretion to discontinue any of the service completely or partially without any notice to the complainant.  The complainant has also agreed that the OPs may debit to the account of the complainant for service charges as applicable from time to time.  The complainant had received the current copy of schedule of charges and agreed to the same. Thus, denying any deficiency in service or unfair trade practice on their part, the OPs have sought dismissal of the complaint.

3.             Evidence of the complainant consists of her affidavit Ex.CW-1/1 and copies of documents Ex.C-1 to C-4.

4.             Evidence of the OPs consists of affidavit of Girish Khurana, their Branch Head Ex.OP-1/1 and copies of documents Ex.OP-1 and Ex.OP-2.

5.             We have heard learned counsel for the parties and have also gone through written arguments filed by them.

6.             Admittedly the complainant has joint savings account with the OPs.  Admittedly the OPs have issued saving account linked debit card to the complainant and the same was valid till 12/2018.  As per the complainant, since the debit card was not functioning properly and she approached the OPs for issuance of new debit card on 03.04.2015. The debit card was not issued to her on the ground that her account has been closed due to zero balance. As per bank records, the account was last operated on 09.09.2013 and since there was no transaction, the OPs have deducted service charges as per bank instructions and finally when it became zero account, the account has been closed.  As per the complainant, she has neither received any notice from the bank nor any statement of account from 09.09.2013 till 03.04.2015 and she learnt about the closure of account on personal visit. The closure of the saving account, as per the complainant is contrary to RBI guidelines and, therefore, the complainant has alleged unfair trade practice and deficiency in service on the part of the OPs.

7.             As stated above, the opening and maintaining of the joint savings account No.085010100132114 with customer ID No.085017017 by the parties and further issuance of debit card No.4688-0508-5012-9772 is not a matter of dispute.  The question involved in the complaint for consideration whether the act of OPs without any prior notice to the complainant, closing of saving account being non operative, is as per RBI guidelines or not. If not, does it amount to unfair trade practice and deficiency in service on the part of the OPs.

8.             The complainant has relied upon the RBI guidelines dated 22.08.2008 on the subject unclaimed deposits/inoperative accounts in the banks and further levy of penal charges on non maintenance of minimum balance in savings bank accounts, RBI guidelines dated 20.11.2014 to show that the said guidelines have not been complied with by the OPs by declaring her savings account as inoperative account. As per these guidelines, all scheduled commercial banks including the present OPs as per Clause 2 (i), are required to make an annual review of accounts in which there are no operations (i.e. no credit/debit other than crediting of periodic interest or debiting of service charges)  for more than one year. The bank may approach the customer and inform them in writing that there has been no operation in their account and ascertain the reasons for the same.  2 (ii)  xxxx     2 (iii) In case the whereabouts of the customers are not traceable, the bank should consider contacting the person who had introduced the account holder. They should also consider contacting the employer or any other person whose details are available with them. They sould also consider contacting the account holder telephonically in case his telephone number/cell number has been furnished to the bank.  2 (iv) Savings as well as current account should be treated as in operative/dormant if there are no transactions in the account for over a period of two years.  As per instructions dated 20.11.2014 issued by the RBI, on the basis of recommendations of Damodarn Committee on Customer Service in Banks, instructions has been issued “bank should inform the customer immediately of the balance in the account, breaching minimum balance and the applicable penal charges for not maintaining the balance by SMS, e-mail/letter. Further, the penal charges levied should be in proportion to the shortfall observed. These policy guidelines came into effect w.e.f. April 01, 2014.

9.             Perusal of the written statement of OPs shows that the account in question was lastly operated on 08.07.2009. As per RBI instructions dated 22.08.2008, it was the duty of the bank to inform the account holder in writing about the non operation of her account and ascertain the reasons for the same. There is nothing on record to show any such communication issued by the bank either in writing or through e-mail or through SMS. Without any intimation to the complainant, at her back, the OPs have illegally deducted the service charges from the balance amount as on 08.07.2009 from the account of the complainant and closed the account being inoperative. Further the OPs have not even disclosed the date of closure of the account and further no document has been produced on record to this effect by the OPs.  The information regarding closure of account has been for the first time provided to the complainant when the OPs have issued statement of account for the period 08.10.2007 to 12.05.2015 Ex.C-1.  As per the OPs the account was last operated on 09.09.2013. This is factually correct as is revealed from the statement of account Ex.C-1. The perusal of Ex.C-1 shows that as on 09.09.2013 the complainant has deposited a sum of Rs.500/- and the total balance in the account was Rs.2,277.60 whereas thereafter no deposit or withdrawal has been made by the complainant and out of the balance amount lying in the account, the OPs have been deducting consolidated charges for the account @ 500/- and service tax @ 12.36% on charge upto 12.07.2014 bringing the closing balance as nil.  Here is the issue which has been clearly proved by the complainant that from 09.09.2013 till 12.07.2014 and even thereafter she has never received any intimation from the OPs. There is no explanation for not following the RBI instructions by the OPs has come forward on the record.  The OPs have not brought any contrary instructions issued by the RBI, if any, on the subject to counter the well meaning and supported contention of the complainant. The act of the OPs of closing of the account being inoperative, is a colourable exercise, quite contrary to the RBI guidelines dated 22.08.2008 and 20.11.2014 and is an act of unfair trade practice and deficiency in service.  Therefore, on the basis of facts, pleadings and documents on record, we are of the opinion that the OPs have deducted the consolidated and service charges from 09.09.2013 onwards till 12.07.2014 at the back of the complainant without any notice or intimation and further declaring the account of the complainant as non operative account, is contrary to the RBI guidelines dated 22.08.2008 and 22.11.2014. Thus,  the act of the OPs squarely falls within the four corners of the definition of unfair trade practice as defined under Section 2 (1) ( r)  and deficiency in service as defined  under Sections 2 (1) (g) (o) of the Consumer Protection Act, 1986.

10.           The complainant has since proved her case of deficiency in service and unfair trade practice against the OPs, therefore, the complaint deserves to be allowed and the complainant deserves to be compensated.

11.           For the reasons recorded above, the complaint is allowed with the following directions to the OPs to:

(a)    OP No.1 is directed to restore the account No.085010100132114 with customer ID No.085017017 of the complainant henceforth.

(b)    OP No.1 is directed to refund a sum of Rs.2,277.60  (Rs.Two thousand two hundred seventy seven and paise sixty only) alongwith interest @ 12% per annum w.e.f. 28.09.2013, which has been illegally deducted as consolidated charges as well as service charges from 28.09.2013 till 12.07.2014 when the closing balance became nil.

 (c)   both the OPs are directed to pay a lump sum compensation of Rs.25,000/- (Rs. Twenty five thousand only) for mental agony, harassment and costs of litigation.

                Compliance of this order be made within a period of thirty days from the date of receipt of a certified copy of this order. Certified copies of the order be furnished to the parties forthwith free of cost and thereafter the file be consigned to the record room.

Pronounced.                           

July 22, 2016.     

                          (Mrs. Madhu P. Singh)

                                                                        President

(Mrs. R.K. Aulakh)

               Member