Disclosure Of Bank Statement To Estranged Husband, Southwest Delhi Commission Holds Vijaya Bank Liable

Brief Facts:

The Complainant opened an account with the Vijaya Bank on June 10, 2000. The Complainant accused the bank of breaching the model policy for bank deposits, which mandates maintaining the confidentiality of customer account details. According to her, the bank disclosed her bank account statements to unauthorized parties, notably her estranged husband, despite her explicit instructions.

The Complainant underscored the seriousness of this breach and highlighted her husband's involvement in embezzlement during his tenure as a Treasury Officer at Tis Hazari Court, Delhi, which had led to his police custody. She claimed that these disclosures caused her irreparable harm and mental harassment. Therefore, she approached the District Consumer Disputes Redressal Commission-VII, Southwest Delhi (“District Commission”) and filed a consumer complaint against the bank.

In response, the bank contended that it maintained the confidentiality of the Complainant's account and did not disclose any unauthorized statements. It clarified that the Complainant's estranged husband had a separate account, which was closed years ago. It also refuted claims regarding the non-issuance of an ATM card and argued that standard procedures were followed. It argued that the Complainant did not provide the necessary documentation for address change, which was eventually updated as per Know Your Customer (KYC) norms.

Observations by the District Commission:

The District Commission noted that the bank statement was issued on 07.05.2010 during operational hours, despite the bank's denial of such action. It held that this discrepancy was pivotal, as it underscored the Complainant's argument against mere denial by the bank. Therefore, it held that this constituted a serious breach of privacy and a potential criminal breach of trust.

The District Commission held that bank statements contain sensitive financial details that are integral to a person's privacy and are typically released only to the account holder or upon explicit authorization. Given the strained relationship between the Complainant and her husband, the disclosure of the bank statement without consent was a clear violation of regulatory guidelines and banking norms. It referred to the RBI guidelines and Banking Rules, which explicitly prohibit such unauthorized disclosures, and held that the bank's actions constituted a deficiency of service and invasion of the Complainant's privacy.

Despite the Complainant's proactive steps in requesting an ATM card and updating her address, the bank's failure to effectively communicate the readiness of the card and fulfil these basic service obligations was held by the District Commission as another instance of deficiency in service. Consequently, the District Commission ordered the bank to pay compensation amounting to Rs. 1,00,000/- to the Complainant for mental harassment and litigation expenses.

Case Title: Shashi Vatan vs Vijaya Bank

Case Number: CC/10/2011