Premature Closing Of Bank Account, Gurdaspur District Commission Directs HDFC Bank To Reactivate Account And Pay Compensation

The District Consumer Disputes Redressal Commission, Gurdaspur (Punjab) bench comprising of Lalit Mohan Dogra (President) and Bhagwan Singh Matharu (Member) held HDFC Bank liable for deficiency in service for closing the Complainant's bank account based on non-submission of Aadhar Card. Considering the mandatory requirement of compliance with KYC norms per circular and the absence of proper intimation to the complainant, the bench directed it to reactivate the account and pay Rs. 5,000 compensation and Rs. 3,000/- litigation costs to the Complainant.

Brief Facts:

Mr. Surinder Kaur (“Complainant”) and her son, Shehbaz Singh, jointly opened a savings account with the HDFC Bank (“Bank”). Since her son migrated to the USA, she has been operating the account in his absence without any issues. Her son had an immovable property in India, rented to Bharat Petroleum Corporation Ltd (“BPCL”), and BPCL used to regularly send rent cheques to their joint account. However, the Complainant received a letter from BPCL, revealing that the Bank closed their account without prior notice. The Bank claimed the closure was due to the Complainant's failure to provide her son's Aadhaar Card. The Complainant stated that as per government and Reserve Bank of India instructions, Aadhaar Card submission was required until June 2018, but the Bank closed the account prematurely. The Complainant made several communications with the Bank but didn't receive any satisfactory response. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission, Gurdaspur, Punjab (“District Commission”).

In response, the Bank stated that the joint account was closed because the Complainant and her son failed to provide Re-KYC (Know Your Customer) documents, including PAN Card, Voter Card, Passport, Driving License, and Aadhaar Card, under RBI norms. The Bank stated that it duly informed the Complainant about the account closure through various means such as SMS, emails, phone calls, and letters. 

Observations by the Commission:

The District Commission held that the Bank closed the Bank account without prior notice. Referring to the Bank's contention that it communicated about the closure through SMS, emails, and written notices, the District Commission noted that there was no evidence of E-mails or SMS notifications that were submitted by the Bank. Considering the mandatory requirement of compliance with KYC norms per circular and the absence of proper intimation to the complainant, the District Commission held the Bank liable for deficiency in service.

Consequently, the District Commission directed the Complainant to provide self-attested copies of their PAN card, Voter Card, Passport or Driving License, and Aadhaar Card to the Bank within 30 days. The Bank was further instructed to reactivate the joint savings account within 15 days of receiving the mentioned documents. Recognizing the harassment and mental agony caused by the account closure without proper intimation, the Bank was directed to pay Rs. 5,000/- as compensation to the Complainant and Rs. 3,000/- as the cost of litigation. 

Case Title: Surinder Kaur vs HDFC Bank and Anr.

Case No.: Complaint Case No. CC/209/2023

Advocate for the Complainant: Shri P.S. Ghuman (For Complainant 1)

Advocate for the Respondent: Shri Deepak Aggarwal (For HDFC Bank)

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