In the absence of concrete evidence or written instructions, a bank is not liable for deficiency in service for failing to auto-renew a fixed deposit or for applying simple interest rates as per regulatory guidelines once a deposit remains unclaimed.

ORDER

STATE CONSUMER DISPUTES REDRESSAL COMMISSION HARYANA, PANCHKULA

Date of Institution: 28.05.2019

Date of final hearing: 28.04.2026

Date of pronouncement: 02.06.2026

First Appeal No.519 of 2019

IN THE MATTER OF:-

Smt. Raj Rani wife of Sh. Vijay Kumar, Daughter of Sh. Tara Chand, R/o H. No.

375/14, Sargodha Colony, Jakholi Adda, Jind Road, Kaithal, Distt. Kaithal.

....Appellant

Versus

The Branch Manager, Vijaya Bank, Near Jai Parkash Hospital, Kaithal Road,

Kaithal, District Kaithal.

…..Respondent

CORAM: SH. S.P. SOOD, JUDICIAL MEMBER

SH. S.C. KAUSHIK, MEMBER

Present: Mr. Dharampal proxy counsel Mr. Lajpat Sharma, counsel for the

appellant.

Mr. Umang Khosla, counsel for respondent through V.C.

ORDER

PER: S.P. SOOD, JUDICIAL MEMBER:

Delay of 01 days in filing of present appeal stands condoned for the reasons

mentioned in application seeking condonation of delay.

2. Unsuccessful complainant is in appeal. Challenge in this Appeal No.519 of

2019 has been invited to legality of order dated 25.04.2019 passed by learned

District Consumer Disputes Redressal Forum, Kaithal (In short “District Consumer

Commission”) in complaint case No.200 of 2018, vide which her complaint has been

dismissed.

3. Factual matrix: Complainant has deposited Rs.1.00 lac through FDR vide

Policy No.VB-2000/VSU No.002083 dated 26.11.2012 at the rate of 6.25% p.a.

interest. It was told by officials of OP that the FDR will be renewed every year on

the same terms and conditions and complainant will get compounding interest on

the same and the interest will be added on the said amount upon last balance of the

policy becoming principal and the same will be carried forward for the next renewal

of the FDR. Upon the assurance of OP, complainant never visited the office of OP.

Complainant was in need of money and approached the OP regarding withdrawal of

FDR, then she came know that OP has awarded only simple interest rate that too

would be paid if complainant will renew the said FDR. The FDR of complainant was

renewed upto 2008 only by the bank at its own but the interest was much less even

after charging the simple interest. Complainant made several requests to OP to pay

her the compounding interest but they did not pay any heed to her request. As per

plea, it is a clear case of deficiency in service on the part of OP.

4. Upon notice, OP filed its reply and submitted that the FDR was not auto

renewal and the same has not been renewed by the complainant after the year

2008. Complainant is not entitled for any compound interest. As per guidelines of

Reserve Bank of India vide letter dated 07.06.2018 and circular dated 14.06.2014

wherein Reserve Bank had specified that the rate of interest payable by banks to the

depositors/claimants on the unclaimed interest bearing deposit amount transferred

to the DEA fund shall be 4% simple interest per annum until further notice. OP has

rightly calculated simple interest from the date of unclaimed interest as per rules and

regulations of RBI. As per plea, there is no deficiency in service on the part of OP.

5. Parties led their respective evidence oral as well as documentary. On

analyzing the same; complaint has been dismissed vide impugned order dated

25.04.2019 passed by learned District Consumer Commission, Kaithal, thereby

giving rise to filing of this appeal by complainant.

6. We have heard learned counsel for the parties at length and with their able

assistant this Commission has examined and perused the entire record as well as

the original record of learned District Commission including whatever evidence has

been led on behalf of the parties.

7. Admittedly, appellant had deposited Rs.1.00 in the shape of FDR dated

26.11.2002 and the rate of interest was fixed as 6.25% p.a. Date of maturity of said

FDR was 26.1