State Bank of India Dombivli harassing a Senior Citizen on Pension account

It is well known that pensioners are dependent on Banks for disbursal of their pensions. Once the pension is approved by the relevant Government department, the instructions are passed on to the Bank and periodical payments are initiated by the Bank. The pensioner is entirely dependent on the Bank for crediting what is due.

An instance has come to the light where the Dombivli branch of State bank of India has suddenly sent a message to a lady pensioner of advanced age that since 1st February 2011 there was an excess payment of payment in the account (average about 15%) and a total amount of around Rs 502000/- has become recoverable. The Bank has gone ahead to block the SB account of the account holder and left the pensioner in the lurch.

A question has to be raised here about whether the payment made by the Bank and credited in excess to the account holder is recoverable?.

According to Banking law applicable for wrong advice of credit, if the customer has altered his position genuinely on the basis of the advise of the Bank, the amount even if excess cannot be arbitrarily recovered. In the case of payment of pension, it is a full and final settlement by the paying authority and it is legally unfair to recover. If there was an error then the excess has to be recovered from who ever was responsible for the excess payment and the Bank has the right to absorb the loss if it deems fit.

I am bringing this incident to public knowledge here so that the authorities responsible for payment of pension in the Central Government may take suitable steps to advise State Bank of India, Dombivli branch to take appropriate corrective action in respect of the complaint which is with them.

In case the authorities want more details, Naavi.org would be providing the same.

We wish SBI and the Central Government responds to this issue immediately.

Naavi

About Vijayashankar Na

Naavi is a veteran Cyber Law specialist in India and is presently working from Bangalore as an Information Assurance Consultant. Pioneered concepts such as ITA 2008 compliance, Naavi is also the founder of Cyber Law College, a virtual Cyber Law Education institution. He now has been focusing on the projects such as Secure Digital India and Cyber Insurance
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