Pay Rs 28,000 for blocking ATM card, DCDRF tells SBI 

MADURAI: The District Consumer Disputes Redressal Forum (DCDRF) has asked the State Bank of India to pay a sum of `28,000 for blocking the ATM card of a senior citizen in order to recover the education loan he had taken for his daughter’s education from his pension amount.

The complainant, U Ramu, is a retired employee of the commercial tax department and is a resident of Iyer Bungalow. He has a Savings Bank account with State Bank of India (KK Nagar branch) and uses an ATM card to withdraw his pension, which is credited to his bank account. Ramu had obtained an education loan from the bank for his daughter’s education in 2011 and a suit was filed by the bank for delaying the repayment of the loan. In March 2013, the bank blocked his ATM card, without prior notice. The ATM card was then reactivated based on the Writ of Mandamus issued by the Madurai Bench of Madras High Court.

Arguing against the complaint, the bank said that it affected ‘Hold transaction’ in the account from February to July 2013, on the basis of the ‘bankers general lien’ against the persons who possessed sufficient funds in the account.