Keywords- HSBC, NCDRC, KYC, Cheque bounce.
In Anil Milkhiram Goyel and Anr v. HSBC Limited
HSBC Bank Ordered by The National Consumer Disputes Redressal Commission (NCDRC) to Compensate Couple with 15 Lakh for Mental Agony and Harassment Due to Dishonored Cheques Despite Adequate Balance
The complainant’s bank account was frozen by the bank, citing their failure to repay an outstanding loan of approximately 1,80,000. Additionally, the bank asserted that their Know Your Customer (KYC) details were not updated.
Dr. Inder Jit Singh, the Presiding Member, noted that there was no evidence to support the bank’s classification of the complainants as high-risk customers and their request to update their KYC every two years, as per the guidelines of the Reserve Bank of India (RBI).
Anil and Neelam Goyel, the complainants, claimed that in November 2015, when they tried to withdraw money from an ATM, the transaction was declined. After contacting the bank, they were informed that the transaction failed due to their non-compliance with the KYC update requirements.
Even though they had previously updated their KYC details in May 2015, Anil and Neelam Goyel visited the bank’s branch in Mumbai to update them once again. To their surprise, they were informed that there was an outstanding balance in the loans associated with their savings account.
However, as the loan amounts had already been settled, the complainants approached the NCDRC in 2016, alleging inadequate service on the part of the bank. They sought compensation of 3.55 crores.
In its response, the bank acknowledged that the loan accounts were settled. However, they claimed that the complainants’ bank account was frozen due to incomplete KYC details.
The bank further explained that while Anil had provided the necessary KYC documents, Neelam had not. They gave this as the reason for freezing the complainants’ bank account.
The National Consumer Disputes Redressal Commission (NCDRC) determined that the bank’s actions amounted to negligence and constituted a deficiency in service, causing unwarranted humiliation, embarrassment, and damage to the complainants’ reputation.
However, since the complainants failed to provide documents demonstrating the extent of their financial losses, the Commission did not grant the requested compensation.
As a result, the Commission ordered the bank to compensate the complainants with 15 lakh as well as 1 lakh to cover litigation expenses. Additionally, the bank was directed to unfreeze the complainants’ account and refrain from seeking any further payments related to the settled loan accounts.
Written By- Muskan Vyas, Legal Journalist Intern under Legal Vidhiya
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