1 month ago
Bank Error Leads to Rs 37,000 Relief for Student's Parents
A bank made a mistake when sending money for a student's education in New Zealand.
Instead of sending New Zealand dollars, they sent US dollars, which cost the student's parents extra money.
The parents asked the bank to fix the mistake, but the bank didn't do anything.
So, the parents went to a consumer commission and won their case.
The commission said the bank had to give the parents back the extra money they lost, plus some interest, and also pay them Rs 15,000 for the trouble they went through.
The bank has 45 days to pay the parents what they owe.
Canara Bank mistakenly remitted NZD 40,002 in USD instead of NZD for a student's education fee.
The error caused a financial loss of Rs 22,019 to the student's parents.
The parents approached the Amritsar District Consumer Disputes Redressal Commission after the bank failed to rectify the mistake.
The commission ordered the bank to refund the excess amount with 6% annual interest and pay Rs 15,000 as compensation.
The bank has 45 days to comply with the order.
- Who
- Navbinder Kaur and Gurbir Singh (parents of a student), Canara Bank
- What
- A bank error in remitting New Zealand dollars (NZD) for a student's education fee, leading to a financial loss and subsequent legal action.
- Where
- Amritsar, Punjab, India
- When
- The exact date of the transaction is not specified, but the commission's decision was made on July 9.
- Why
- The bank mistakenly remitted the amount in US dollars (USD) instead of New Zealand dollars (NZD), causing a financial loss to the parents.
Bank's Perspective
Consumer's Perspective
Transaction Error
Bank's Perspective
The bank may argue that errors can occur and that they have processes in place to rectify such mistakes.
Consumer's Perspective
The consumer argues that the bank failed to follow instructions and caused a financial loss.
Compensation
Bank's Perspective
The bank might believe that the compensation awarded is excessive and that they have already taken steps to rectify the error.
Consumer's Perspective
The consumer believes the compensation is justified due to the financial loss and the mental harassment caused.
Key facts
- Amount to be Remitted
- NZD 40,002
- Amount Remitted by Bank
- USD 23,933.23
- Exchange Rate for USD
- Rs 86.24 per USD
- Exchange Rate for NZD
- Rs 51.05 per NZD
- Total Debit from Account
- Rs 20,64,121
- Amount Payable in NZD
- Rs 20,42,102
- Financial Loss
- Rs 22,019
- Compensation Awarded
- Rs 15,000
- Interest Rate on Refund
- 6% annual interest
- Time to Comply with Order
- 45 days
Quotes
Amritsar District Consumer Disputes Redressal Commission
Commission official overseeing the case
“A bank acts as a service provider and is under a legal obligation to exercise due care. The act of the opposite party in remitting the amount in US Dollars instead of New Zealand Dollars squarely falls within the ambit of ‘deficiency in service’”
indianexpress.com
Sources
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