Hyderabad woman wins case against SBI over Rs 23 lakh transfer error

Hyderabad: The Rangareddy District Consumer Commission has held State Bank of India (SBI) liable for failing to recover Rs 23 lakh transferred to a wrong account, terming it a deficiency in service.

The Commission directed the bank to recover the amount from the beneficiary and pay Rs 50,000 as compensation within 45 days.

Loan taken to repay sister’s dues

P Venkatalakshmi, a resident of Kukatpally, had availed a personal loan of Rs 25 lakh from SBI’s Vivekananda Nagar branch to clear her sister’s loan with APSFC. On October 27, 2023, she issued a cheque to transfer Rs 23 lakh via RTGS to the APSFC account.

Error in account number

However, due to a mistake in the account number—where four zeros were required but only three were entered—the amount was credited to another individual’s account in Karnataka.

Realising the error on the same day, Venkatalakshmi immediately informed SBI officials. Though she was assured that the funds would be recovered quickly, no prompt action followed. By then, the unintended recipient had withdrawn ₹8.5 lakh, while the remaining amount was later put on hold.

Complaints yield no result

Despite approaching SBI, regulatory authorities, and grievance redressal forums, she failed to get relief. Left with no option, she approached the Consumer Commission.

Commission finds deficiency in service

During the hearing, SBI argued that the mistake was due to the complainant’s negligence. However, after reviewing the facts and evidence, the Commission ruled that the bank had a duty to act swiftly once informed and held it accountable for deficiencies in service.