Bank stopped widow from accessing matured FDs; commission orders Rs 13.87L payment
A Kerala district consumer commission has ordered a cooperative bank to pay a widow Rs 13.87 lakh after it restricted her access to matured fixed deposits. The bank claimed the restriction was due to an internal inquiry, but the commission ruled that consumer protection laws supersede the bank's internal priority lists.
Why it matters
This case highlights the legal protections available to depositors against arbitrary banking restrictions and the primacy of consumer rights over internal institutional policies.
NEW DELHI: A Kerala district consumer commission has directed a cooperative bank to pay Rs 13.87 lakh to a depositor after it restricted her withdrawals from her savings account despite her fixed deposit hit maturity. The commission also awarded Rs 25,000 compensation and Rs 3,000 litigation costs in an order passed on September 17, 2026.Why did the depositor approach the consumer commission?According to the commission order, the woman had four fixed deposits with the Kandala Sahakarana Sangham Cooperative Bank. After the deposits matured, their proceeds were transferred to her savings account with the bank.The woman initially had Rs 7.44 lakh credited to her account after two fixed deposits were closed. However, the bank allowed her to withdraw only Rs 50,000 and did not release the remaining amount.She later sought the money for her mother's medical treatment and also to repay arrears on a gold loan.
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