Home / Business and Economy / Bank of Baroda Fined Rs 3.28 Lakh for 9-Year Refund Delay
Bank of Baroda Fined Rs 3.28 Lakh for 9-Year Refund Delay
20 Mar
Summary
- Bank ordered to pay Rs 3.28 lakh for a 9-year delay in refunding Rs 10,000.
- Failed ATM withdrawal occurred on February 18, 2017, but refund took nearly nine years.
- Consumer court cited RBI rules mandating refunds within five days for failed ATM transactions.
A consumer court in Surat has mandated Bank of Baroda to compensate a customer with Rs 3.28 lakh. This significant penalty arises from the bank's failure to process a refund for a Rs 10,000 ATM withdrawal, which failed on February 18, 2017. The customer did not receive the funds back for almost nine years, despite multiple follow-ups.
The Reserve Bank of India's directives clearly state that failed ATM transactions must be reversed within five days. Bank of Baroda was found to have neglected this rule, leading to the extended delay. The customer pursued the matter persistently, filing complaints and even an RTI request for CCTV footage.
The court rejected the bank's defense that the ATM belonged to another bank, emphasizing that it was Bank of Baroda's responsibility to resolve the issue. The compensation of Rs 3.28 lakh reflects the 3,288 days of delay, calculated at Rs 100 per day as per RBI guidelines, in addition to the original amount with interest.
