₹23L RTGS Error: SBI, Canara Ordered to Recover Funds, Fined ₹50K
HYDERABAD: The Ranga Reddy District Consumer Commission has directed State Bank of India (SBI) and Canara Bank to recover ₹23 lakh wrongly transferred to another account due to a clerical error.
The Commission also ordered the banks to pay ₹50,000 compensation to the complainant, P. Venkata Lakshmi, a resident of Kukatpally.
Loan taken to clear sister’s dues
Lakshmi took a personal loan of ₹25 lakh from SBI’s Vivekananda Nagar branch to repay her sister’s loan with the Andhra Pradesh State Financial Corporation (APSFC).
On October 27, 2023, she issued a cheque to transfer ₹23 lakh through RTGS to APSFC’s account at Canara Bank’s Khammam branch.
Error in account number leads to wrong credit
A clerical error in the account number caused the issue. The form required four zeros, but the entry had only three. As a result, the system credited the amount to an account belonging to Shivakumar Patel at Canara Bank’s Jagaluru branch in Karnataka.
Lakshmi noticed the mistake and informed SBI officials the same day. Bank staff assured her that they would reverse the amount by evening. However, they did not act.
The unintended beneficiary withdrew ₹8.5 lakh soon after receiving the funds. Later, the bank put the remaining amount on hold.
Complaints fail to yield results
Lakshmi approached both banks, the Reserve Bank of India (RBI), and the Banking Ombudsman. However, she did not receive any effective resolution.
She then approached the Consumer Commission seeking relief.
During the hearing, SBI argued that Lakshmi made the error. The Commission examined the records and rejected this defence. It held that the banks failed to act promptly to recover the funds. It termed this a deficiency in service.
The Commission directed both banks to recover the amount from the beneficiary. It also gave them 45 days to comply with the order.
