Canara Bank Ordered to Compensate NRI with Rs 5 Lakh

Canara Bank Told to Pay Compensation to NRI

Canara Bank Ordered: Holding Canara Bank and its officials accountable for service deficiencies and unfair trade practices, the National Consumer Disputes Redressal Commission (NCDRC) increased compensation for a 95-year-old NRI to Rs 5 lakh from Rs 1 lakh.

Canara Bank Ordered to NRI

Canara Bank is instructed to pay Rs 9 lakh to the British citizen, covering compensation and awards with interest, along with Rs 25K as litigation costs.

In this instance, the Goraya (Punjab) branch of Canara Bank, along with one official, converted the senior citizen’s Foreign Currency Non-Resident (FCNR) deposit into Indian rupee deposits without the NRI’s consent.

Swaran Singh Saggu, a UK-based NRI, had substantial FCNR fixed deposits with Canara Bank, set to mature on specific dates. Mr. Saggu aimed to encash and transfer the FCNR amounts to his UK account, providing necessary details to Deepak Bansal, Canara Bank’s branch manager.

However, Canara Bank’s failure to locate the original file, despite repeated visits and requests over six weeks, caused delays. The bank’s actions were deemed unfair and negligent of their obligations to Mr. Saggu, using false pretences and entertaining claims from others.

Mr. Saggu, facing prolonged stay expenses in India, sought court intervention, incurring significant costs for lodging, legal counsel, and health reasons.

Eventually, the Punjab & Haryana High Court ordered the transfer, recognizing Mr. Saggu’s rightful claim over the deposited amounts.

Also Read : CID Apprehends NRI at Hyderabad Airport

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