BENGALURU: A consumer forum in the city ordered ICICI Bank Limited to pay Rs 3.50 lakh in compensation to a resident for negligence over the issue of Demand Drafts (DD). Due to the bank’s slack attitude, the complainant’s daughter lost her credibility and credit rating in the US, it said. The Fourth Additional District Consumer Forum ordered the bank to pay Rs 3 lakh compensation and Rs 50,000 cost of litigation to S Suresh, resident of RBI Layout.
The forum, comprising president R K Prathibha and member N R Roopa, observed, “Admittedly, the bank returned the DD amount of Rs 7 lakh after filing of the complaint. Due to the bank’s negligent act, the complainant’s daughter had to run from pillar to post in search of money for her daily expenditure. Hence, we award compensation and also litigation cost.”
According to the complaint, Suresh had purchased two DDs dated August 4, 2016, for the amount of $5,286.95 and $5,520.34 from ICICI Bank’s MG Road branch, drawn on JP Morgan Chase Bank, in the name of his daughter Supritha Suresh, as she intended to travel to the US to pursue higher education.
As per the bank’s instructions, she presented the DDs before her bankers, PNC Bank, Pittsburgh branch, USA. Subsequently, she issued a cheque to her landlord towards rent. The cheque bounced due to insufficient funds. Immediately, she contacted her father. He enquired with ICICI Bank, which informed him that the DDs were returned with the reason “refer to maker”. Therefore, the DDs issued by the bank had been dishonoured.
The bank did not even make an attempt to resolve the issue, but made him run around to get the money, the complaint said. With no other option, he immediately had to mobilise additional funds to send to his daughter, so she could pay the rent.
Further, Suresh contended that in response to his complaint, the bank authorities replied arrogantly and asked him to present the DDs again, and it would bear the costs. His daughter’s debit card was blocked by her bankers, as the cheque bounced. And she had to take a loan from friends for her immediate expenditure. He suffered huge a monetary loss of $10,873.
Ombudsman orders G 2,000 compensation
Suresh approached the Banking Ombudsman, who held ICICI Bank guilty and ordered a token compensation of Rs 2,000. The bank claimed that the DDs were dishonoured not due to paucity of funds, but due to a small glitch in the DD amount. It claimed that it had issued DDs for a greater amount instead of the actual amount, and hence, they were returned.