SBI ordered to pay Rs 1.7 lakh to a Delhi customer for not deducting car loan EMIs despite sufficient balance

Core Viewpoint - The Delhi State Consumer Disputes Redressal Commission held the State Bank of India (SBI) accountable for service deficiency after dishonoring 11 EMIs despite the customer having sufficient funds, resulting in a compensation order for the complainant [7]. Group 1: Customer Complaint - Chhaya Sharma, a resident of Karawal Nagar, filed a complaint against SBI for returning 11 EMIs, with three marked as "insufficient funds" and eight as "invalid account," while she had adequate balance [1][2]. - Sharma sought correction of the bounce entries, a refund of ₹4,400 in bounce charges, and ₹10 lakh for mental harassment and inconvenience [3][6]. Group 2: District Forum's Decision - The district consumer forum initially dismissed Sharma's complaint, citing technical aspects under the Reserve Bank of India's ECS guidelines and concluding no deficiency in service by the banks [4]. Group 3: State Commission's Findings - The state commission reviewed account records and found that Sharma maintained sufficient funds when the EMIs were presented, and SBI failed to provide evidence of insufficient balance [5]. - The commission ruled that SBI was deficient in service for dishonoring the EMIs and unjustly charging bounce fees, ordering SBI to pay ₹1,50,000 for mental agony and ₹20,000 for litigation expenses, with a 7% interest applicable for delayed payment [7].