Misselling of FD?

Question

I Have spent 50 K with bank for Tax Saving FD ( A/C No XXXXXXXXXX1638). Bank executive has come to our office for tax saving purpose & suggested that FD is one of safest investment with certain returns. He told that if I invest 50000 then after 5 years maturity amount will be 77077 @ 8.75 % interest rate compounded quarterly. But after 5 years when I go to bank for maturity amount thay say maturity amount is 71551. After speaking to phone banking executive they say since interest rate is 5 %. I have hard copy of FD as per which 8.75 % interest rate compounded quarterly. One of bank staff has said that his employees are loosing job after merger that’s why they are not interested in such matters. Now I don’t know what to do ?? This is first time I am seeing miselling on FD, which is known as safest bet to invest. I have FD with other bank, but I have not seen any such kind of miselling, ignorance & disrespect from any other bank. Look like your bank Staff has totally lost its interest to work with bank after merger. What customer will do in such case ??? For small purpose bank charge customer penalty.Iam going to bank & calling bank for this issue & I have spent more than Rs 5000/-, Doesn’t bank has to pay penalty for this . This is not only case of miselling, harassment, disobedience & rejecting, that too for FD which is safest investment. On date 29.01.2016 Mr Uppalapati Srinivas has sent mail to Shruti Srivastava for this query, but both are not bothered to take any action & asked me to log a complaint online. Please listen all recording for the complaint no 012586882 & see how much helpless is bank branch & phone banker. I request to penalize bank with fine of good amount to customer harassment. This is FD, where no such issue should come, & they are dragging too far.

Thanks & Regards
Somendra Gupta

Answer 1

Dear Somendra,

At the outset, let me clarify that this site is designed by a group of senior Banking Professionals to assist Bank Customers at large to provide guidance for resolution of any complain/query/grievance in respect of financial services. This site does not belong to any Bank or a regulator, which may please be noted.

 I don't think this  to be case of mis-selling. I find certain discrepancies in your statements and observations. If interest rate was 5% and not 8.75% the the maturity value of your deposit could not have become Rs.71551/-. Since you have made the deposit under tax savings scheme and the value of the deposit being Rs.50000/-  and assuming you did not have any other deposit in the bank (home branch or any other branch of the bank), it was outside the purview of TDS. Your  bank cannot shy away from explaining  the reason and rationale for the maturity value falling short of Rs.77077/- or  it has to pay you the amount of Rs.77077/- as mentioned in the deposit receipt in your custody.  

It would be appropriate for you to escalate your complaint to the Banking Ombudsman if  your bank has failed to resolve your grievance within 30 days from the date of your complaint. As a last step before escalating the complaint to the BO, you may write to Nodal Officer of your bank. This may spare the need for taking up with the BO. Contact details of Nodal Officer can be found on the bank's website.

For address of the Office of the Banking Ombudsman, Area of Operation (jurisdiction) and the procedure for lodging complaint, you may access the website https://bankingombudsman.rbi.org.in/

 

Regards

 

J R Mohandas