A practical guide on how to get compensation from SBI

5 min read
September 21, 2019

The State Bank of India (SBI) is one of the largest public sector banks in India. If you have a complaint with SBI, you know what to do. If you face some loss or inconvenience due to SBI’s poor services, you will get compensation. According to SBI’s compensation policy, you will be paid within 15 days after the deficiency is acknowledged by the bank.

In this guide, we break-down SBI’s refund policy to help you understand when will SBI refund you.

When can you claim compensation from SBI?

You can get compensation from SBI, if you are facing at least one of the following issues-

  • Suspicious or unauthorised transaction in the account
  • Bank didn’t follow ECS or standing instructions
  • Undue delay in NEFT/NECS transactions
  • Issue of debit/credit card without consent
  • Bank didn’t follow stop cheque payment instructions.
  • Bank didn’t block ATM card after acknowledging the request to block it
  • Delay in clearance of local cheque
  • Lost cheque
  • ATM transaction failure
  • Pension delayed
  • Wrongful dishonour of cheques

What to do if there’s an unauthorised or incorrect debit in your account?

  1. The bank will reverse the transaction after verification. 
  2. The bank will compensate for any losses or a cheque you faced due to insufficient balance in the account.
  3. You will get a minimum of Rs 100 as interest besides refunding the cheque return charges.
  4. Your case will be verified between 7-30 days. 7 days if it does not involve a third party. 30 days for a third party erroneous debit.
  5. If the unauthorised debit is due to a fraudulent transaction due to the bank’s fault, the amount will be restored to the affected customer account without delay.
  6. If a bank agent committed fraud, you will get additional compensation of 1% of the total amount involved.

Issues related to Electronic Clearing System (ECS) at SBI

The bank will pay interest within the range of Rs 100 to Rs 1000 with compensation.

The bank will pay interest for delays in return of NEFT/NECS/ ECS transactions. You can check SBI’s website for detailed information.

What to do if an ATM/debit card is issued without your consent?

  1. Report to the bank immediately.
  2. Return the unused card.
  3. The bank will cancel the card.
  4. Bank will reverse the charges.
  5. You will receive compensation of Rs 100.

What happens if SBI fails to block your lost ATM card?

  1. The Bank will reverse the debit within 2 working days of the customer stating the transaction to the Bank.
  2. You will also receive a compensation of Rs.100/-.
  3. You will receive NO compensation if an ATM transaction has already taken place before you intimidated the bank.

The bank proceeded with the payment of cheque after you placed a request to stop it. What next?

  1. You will receive a compensation of Rs.100/-.
  2. The Bank will reverse the debit within 2 working days of the customer stating the transaction to the Bank.
  3. You will receive NO compensation if the cheque has already been paid before you intimidated the bank.

SBI ATM didn’t work – will you get compensation?

  1. According to RBI’s guidelines, complaints regarding ATM issues should be resolved within 7 working days.
  2. If the bank fails to re-credit the customer’s account within 7 working days of receiving the complaint, a compensation of Rs 100/- per day will be received by the customer.
  3. In case of a technical failure the amount will be reversed automatically.

What to do if your pension is delayed?

  1. According to RBI all pensions should be credited into the account on any of the last four working days of each month. (March pensions will be credited on the first working day of April)
  2. The compensation amount will be credited in the pensioners account automatically.

What to do if your cheque was wrongfully dishonoured?

  1. The bank will investigate the reason for such a lapse and you will be informed within 7 working days from the date of the complaint.
  2. You will be compensated at Rs. 100/ per day for the period of delay to a maximum of Rs. 1000/-, wherever justified.

How will bank agent violations be handled?

  1. If you complain about improper conduct regarding a bank agent, the bank will investigate the issue, redress the complaint and inform the customer within 7 working days.
  2. The bank may compensate the customer suitably for any financial loss caused due to this.

When is SBI not liable?

The bank will not be liable to compensate the customers under this policy if some unforeseen circumstances take place, that are beyond the control of the bank like natural disasters, accidents, fires, war, damage to the bank’s system and more.

Can SBI refuse to pay compensation?

Yes, they can, in the following scenarios-

  1. If there is an alleged deficiency in regard to loans and advances activities of the Bank.
  2. Dishonour of at par payment agreement with other banks, due to non-funding and security compliance.
  3. In case of delay on account of non-functioning of business due to factors beyond the control of the bank the period covered by such events shall be omitted for calculation of delay etc.
  4. Where the issues are sub-judice and pending before Courts, Ombudsman, arbitrator, Government and matter put on hold due to stay

How to protect yourself from fraudulent activities?

  1. No fraudulent acts – If the customer engages in any illegal/criminal activities, the bank will not be responsible for the loss to the customer caused due to their own activities.
  2. Do not give out security information to anyone – The bank does not hold the responsibility of losses that are caused due to misuse of lost PIN, passwords etc. If you delay the complaint, you might lose more.

Do you have a complaint with SBI? Start your issue below-

Written by Nishtha Sethi

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