The State Bank of India (SBI) has been ordered by the District Consumer Disputes Redressal Commission Kanpur Nagar to pay a lump sum of ₹7 lakh in compensation to an advocate who was unable to sit for a recruitment examination due to the bank’s failure to deposit his examination fee. The commission found that the bank’s conduct constituted a “deficiency of service” and caused “irreparable physical, mental and economic loss” to the complainant.
Background and Facts of the Case
The complainant, an advocate, had passed a preliminary examination and deposited the required fee (₹225) at an SBI branch in December 2015 for the main examination of the position of Assistant Prosecution Officer (APO) in Uttar Pradesh. The fee deposit was made at the Krishna Nagar branch, Kanpur, but the bank issued a general receipt instead of crediting the fee to the examination authority’s account. He attempted to update his bank details on the exam portal, but the update failed twice — on December 9 and again on December 11, 2015. Because the last date fell on a Sunday after a bank holiday, no further opportunity was available and he was barred from appearing in the main exam. In 2018, the advocate filed a consumer complaint seeking ₹20 lakh in compensation. The bank failed to appear at hearings and the proceedings continued ex-parte. The consumer commission noted that the banking ombudsman had already found in favour of the complainant, and the bank had issued an apology.
Consumer Commission’s Findings and Order
The commission held that:
- The bank admitted its oversight through the apology letter and the ombudsman order.
- The complainant had scored 203 marks in the earlier APO exam (2007), missing the cut-off by 9 marks, demonstrating his potential and thereby establishing career loss.
- The failure to credit the exam fee amounted to bank negligence and disrupted the candidate’s opportunity to compete.
- The complainant suffered mental and economic injury in addition to the lost opportunity.
As a result, the bank was directed to pay:
- ₹7 lakh as lump sum compensation.
- 7% simple interest per annum on that amount from the date of complaint filing (October 16, 2018) until payment.
- ₹10,000 towards litigation costs. The bank was given 45 days to comply with the order.
Implications for Banks and Service Standards
This case underscores the importance of banks promptly crediting transactional responsibilities — especially in contexts such as examination fees where timing is critical. It serves as a precedent reinforcing that financial institutions must ensure due diligence, accurate receipts, and clear responsibilities, failing which they may face liability for service deficiencies. For aspirants and customers, it highlights the need to retain receipts, track when payments are credited, and challenge non-compliance through appropriate forums without delay. Follow KollegeApply for the latest updates on College Admissions, Courses, Exam Dates, Results, Scholarships, Career Guidance, Education News, and Policy Changes — everything needed to stay ahead in the education journey
