Union Bank ‘sends’ Rs 1.09 lakh to wrong account, lawyer couple wins Rs 2.29 lakh

A Telangana consumer commission has ordered Union Bank of India to compensate a lawyer couple with Rs 2.29 lakh following a mistake that involved transferring Rs 1.09 lakh to a third-party account. The commission found that the bank's action constituted a deficiency in service and unfair trade practice. The couple, G Nagaraju and V Janardhan Reddy, had a joint savings account and a joint property term loan with the bank.

In February 2025, they received a notification that Rs 3.35 lakh had been debited from their savings account and transferred to a loan account, leaving their savings account showing a negative balance. The commission directed the bank to pay Rs 1 lakh for mental agony and unfair trade practice, as well as Rs 1.09 lakh to return the wrongly transferred amount. The bank was also ordered to pay Rs 10,000 in legal costs.