The State Consumer Commission dismissed the State Bank of India, Adilabad Collectorate Branch’s appeal and directed them to pay the Golden Certificate Scheme maturity amount of ₹1 lakh.
The Commission bench comprising Justice MSK Jaiswal and Member K Ranga Rao was dealing with an appeal filed against P. Mahender Reddy, who bought a Golden Jubilee Certificate by paying ₹4,048 with a maturity date of August 18, 2017. Mr. Reddy approached the bank with the certificate seeking the payout but no payment was made.
The bank stated that the certificate was issued in the name of a minor and that it was not transferrable. They also stated that the rate of interest would be contingent upon prevailing rate on the date of renewals and subject to RBI guidelines. The complainant has no locus standi and the minor in whose name it was bought was not produced before the bank.
“In the absence of any evidence as to what was the prevailing rate of interest on the due date of renewal, the bank cannot be heard saying that they will not pay ₹1,00,000 as has been promised but will pay reduced amounts,” the Commission stated.
Upholding the order of the district forum, the Commission directed the bank to pay ₹1 lakh with interest at prevailing rates after August 18, 2017, till the money is paid.
