Elderly farmer awarded compensation after bank delays release of late wife's savings
An 83-year-old farmer finally obtained his deceased wife's Rs 62,541 savings after the Bank of India stalled the claim, and the Ernakulam Consumer Commission ordered the bank to pay Rs 10,000 compensation.
Mrs Radha maintained a savings balance of Rs 62,541 at the Bank of India, Kuruppampady branch, naming her son Visaradan as nominee. Following the deaths of both Radha and Visaradan, her husband Govindan, an 83-year-old farmer with limited English, approached the bank to retrieve the funds. He provided death certificates and a legal heir certificate, yet the branch manager delayed release pending a legal opinion and repeatedly requested additional documents.
After several visits and a registered letter, the amount was finally transferred on September 4, 2023. Govindan then lodged a consumer complaint, citing repeated trips, financial strain, and mental distress. The Ernakulam Consumer Commission found the bank's hyper-technical approach and failure to communicate in a language Govindan understood to be a service deficiency, ordering Rs 10,000 compensation and Rs 5,000 for litigation expenses. The commission cited RBI guidelines that require simplified, multilingual procedures for deceased-depositor claims.
Why it matters
The case highlights the need for banks to handle deceased-depositor claims promptly and in languages customers understand.
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