Orissa

Cuttak

CC/6/2016

Smt Sita Devi Kedia - Complainant(s)

Versus

The Branch Manager,Allahabad Bank - Opp.Party(s)

04 Jul 2016

ORDER

IN THE COURT OF THE DIST. CONSUMER DISPUTES REDRESSAL FORUM,CUTTACK.

C.C No.06/2016

 

Smt. Sita Devi Kedia,

W/O:Sri Hariram Kedia,

Upper Telenga Bazar,

Cuttack-753009                                                                            … Complainant.

 

Vrs.

Branch Manager,

Allahabad Bank,

Cuttack Main Branch,

Naya Sarak,Cuttack..… Opp. Party.

 

Present:               Sri Bichitrananda Tripathy,Presiding Member.

Smt. Sarmistha Nath, Member.

 

Date of filing: 11.01.2016

Date of Order: 04.07.2016

 

Mr. Bichitra Nanda Tripathy,Presiding Member.

 

                Unfair trade practice and deficiency in service in respect of paying less amount of interest on bank deposit are the allegations arrayed against the O.P.

2.            The complaint in nutshell reveals that Smt. Sita Devi Kedia had deposited a sum of Rs.50,000/- with Allahabad Bank,Cuttack Main  Branch(O.P) in joint name with her husband, Sri Hari Ram Kedia.  The Bank had agreed to pay interest @ 9.55% per annum.  Since Smt. Kedia wanted to take monthly interest the O.P bank paid her interest @ Rs/.395.00 per month which comes to Rs.4740/- for one year (12 months).  It is alleged that since interest @ 9.55% per annum on Rs.50,000/- is Rs.4775/- and the Bank has paid Rs.4740/-during the year @ Rs.395/- per month, as such the Bank has paid less interest amounting to Rs.35/-. It is also alleged that a letter to this effect was addressed by Smt. Sita Devi Kedia on 1.10.2015(which was acknowledged by the Bank on 01.11.2015) was also not replied by the Bank.  Therefore, the complainant finding no other way has filed the suit with the Hon’ble ForumThe complainant has prayed for Rs.35/- towards less interest paid and Rs.25,000/- as compensation towards litigation and mental agony.

3.            Advocates of complainant and Bank representative for O.P have attended the case. During hearing it was not proved that the O.P Bank has ever assured the husband of the complainant to pay the differential amount of Rs.35/- on a future date for the above deposit.

4.            (a) As per R.B.I guidelines “interest on term deposits is payable at quarterly on larger rests”.

(b) As per IBA guidelines “In terms of Reserve Bank of India directives, interest shall be    calculated at quarterly intervals on term deposits and paid at the rate decided by the bank depending upon the period of deposit.  In case of monthly deposit scheme, the interest shall be calculated for the quarter and paid monthly at discounted value.”

(c) As per guidelines of State Bank of India “payment of monthly interest will be at discounted   rate”.

(d) As per guidelines of Allhabad Bank” payment of monthly interest will be at discounted rate.”

5.            Basing on the above noted facts and guidelines given by RBI and others it is crystal clear that when interest is payable on fixed deposits in each month, generally it is paid at discounted value.  Allahabad Bank is justified in paying interest at discounted rate and as such the differential amount of Rs.35/- is not payable by the bank to Smt. Kedia, the complainant.

6.            Sri Hari Ram Kedia, Advocate for complainant produced interest certificate from “The Karnataka Bank Ltd.” wherein it is observed that the Karnataka Ban k is not paying monthly interest at discounted rate – but is paying monthly interest at usual rate.   Such payment of interest by “The Karnataka Bank Ltd.” may also be correct since as per R.B.I guidelines “There shall be a comprehensive policy on interest rate on deposits duly approved by the Board of Directors on any committee of the Board to whom powers have been delegated”.  Basing on the payment of monthly interest on F.D.R by the Karnataka Bank Ltd.” we cannot conclude that the payment of monthly interest on F.D.R by Allahabad Bank which is paid at discounted rate is wrong.  Payment of monthly interest by Allhabad Bank at discounted rate is correct since it is based on R.B.I guidelines and also on their own guidelines.

7.            Smt. Sita Devi Kedia vide her letter dt.01/.10/2015 (duly acknowledged by the O.P Bank on 01.11.2015) requested the O.P bank to pay the differential amount i.e. Rs.35/- to her S.B.Account.  Even if the Bank is justified in paying the interest at discounted rate as per R.B.I guidelines/ as per their own guidelines, the O.P bank should have given a suitable reply to Mrs. Kedia, the complainant which could have convinced her on the matter.

                                                                                ORDER

                Allahabad Bank is not at fault regarding payment of monthly interest on the F.D. R No.50232993309 dt.17.09.2014 for Rs.50,000/- of Smt. Sita Devi Kedia.  But the Bank has not responded the written letter dt.01.10.2015 of Smt. Sita Devi Kedia which was duly acknowledged by the Bank on 01.11.2015.  Bank should have given a suitable reply to the above letter.  However, Manager, Allahabad Bank, Cuttack Main Branch is advised to respond the written complaint of customers with little more care since customers are very important persons for the Bank. No orders as to costs.

Typed to dictation, corrected and pronounced by the Hon’ble Member in the Open Court on this the 4^th day of July, 2016 under the seal and signature of this Forum.

   (Sri B.N.Tripathy )

                                                                                                                  Presiding Member.

 

 

                                                                                                                   (Smt. Sarmistha Nath) 

                                                                                                          Member(W).