Banks should recoup swindled customers if they are negligent: HC

MADURAI: The Madurai Bench of Madras High Court opined that training should be imparted to bank authorities to verify the signatures of account holders to avoid the customers' money from getting swindled. They should provide insurance to swindled customers if the authorities are found to be negligent, it added.

Justice B Pugalendhi made the observations while allowing a revision petition filed by one K Venkateshwaran, seeking direction to a lower court to take cognisance of his complaint against the branch manager of a nationalised bank for colluding with two persons in swindling Rs 49.5 lakh from his nonagenarian father by imitating his father's signature.

The judge said, "The Bank officials are not expected to verify the signatures like a handwriting expert. But, they are expected to verify the same with some techniques, other than a normal citizen, for which, some training has to be imparted to them. Otherwise, the system would not function properly."

He also opined that the bank should take responsibility in case of fraud in their institution. "There should be a mechanism of insurance facilities to protect the interest of their depositors," he said and appealed to the authorities to do the needful.

The petitioner had placed his father Kalyanarama Iyer (95) and mother Jeyalakshmi (87) under the care of one of his acquaintances S Baskaran in Madurai. Taking advantage of the old age and poor health of the couple, Baskaran, along with one B Maragathamani, imitated the signature of Kalyanarama Iyer on the cheques and other documents and transferred around `49.5 lakh from the couple's account to theirs.

Venkateshwaran claimed that the branch manager of the bank also colluded with the duo citing that the difference in the signatures can be spotted even by the naked eye. Since the lower court refused to take cognisance of his complaint against the manager, he approached the court. Finding certain negligence on part of the officials, the judge made the above observations.