Husband fights bank over late wife’s savings; win 10k

Typically, banks require a nominee for a deceased account holder's savings account to ensure the funds reach legal heirs. However, when both the account holder and nominee pass away, the surviving family member faces challenges. In Ernakulam, Kerala, Mr. Govindan, aged 83, had his wife's savings account at the Bank of India, Kuruppampady Branch, with their son as the nominee. Both passed away, leaving Govindan as the sole family member.

To access the funds, Govindan presented the required documents to the bank, including relationship certificates, death certificates, and a legal heir certificate. However, the bank deferred payment, claiming they needed a legal opinion on the matter. After submitting additional documents, the money was eventually credited to Govindan's account in September 2023.

Despite this, Govindan filed a consumer complaint against the bank, alleging excessive delays, multiple trips to the bank, financial hardship, and mental anguish resulting from the prolonged process. The Ernakulam Consumer Commission ruled in favor of Govindan, ordering the bank to pay him Rs 10,000 in compensation and Rs 5,000 for litigation expenses.

The consumer commission criticized the bank's approach, stating that banks should be customer-friendly and communicate in regional languages for those who do not understand English. They also pointed out that the Reserve Bank of India emphasized simplified and hassle-free claim settlements in various communications. The commission found that the bank's failure to provide clear instructions and facilitate the claim within a reasonable period constituted a deficiency in service, causing avoidable inconvenience, hardship, and mental anguish for the elderly claimant.