Bank Refund Policy: Due to a small mistake, an amount of ₹52,659 went to the wrong bank account. The bank did not pay attention to the complaint, after which the matter reached the consumer court. The court ordered both the banks to return the amount, pay 10% interest and pay compensation for mental agony.

Bank Refund Policy: 69-year-old Vanga Krishna Reddy of Peerjadiguda (Telangana) thought that renewal of health insurance would be done in two clicks. But a small mistake made him run around banks and courts for two years. A typing mistake of one digit left his ₹52,659 stuck and a legal battle began.

One wrong transfer, two payments and zero accountability

In June 2023, Krishna Reddy deposited his health insurance premium through his bank's mobile app. The policy's expiry date was just three days away. In a hurry, he mistyped a digit in the beneficiary's account number. The money went to the wrong account and did not reach the insurance company. Realising the mistake, he immediately made a fresh payment of ₹52,659 with the correct details so that the policy remains active. But the first transaction got caught in a digital vortex.

The bank said – “Let’s see” (Bank Refund Policy)

As soon as the mistake was discovered, Krishna Reddy informed his bank. The bank said they would look into the matter. An initial response was received, and the bank sent a chargeback request to the receiving bank. But the reply from there was “Customer could not be contacted, so debit confirmation could not be received.” Meaning the bank could not even talk to the person who received the money by mistake. Disappointed, Reddy approached the Ranga Reddy District Consumer Disputes Redressal Commission (Consumer Court) in May 2024. The hearing began there. His bank said that we followed the entire process, it was not our mistake. The receiving bank did not even appear.

The court gave its verdict – “Both the banks are responsible”

The commission held both the banks guilty of “deficiency in service”. The court said that the customer made a mistake, but it was the responsibility of the banks to stop the transaction or alert if the account number and name did not match. The court took a tough stand in this consumer case and ordered that both the banks together return the entire amount of ₹ 52,659 to the consumer.

Along with this, the court also directed that 10% annual interest be paid on this amount. Apart from this, keeping in mind the mental agony and trouble caused to the consumer, the court also ordered to pay separate compensation and court expenses (court fees).