A consumer complaint against a bank lies before the District, State or National Consumer Commission under the Consumer Protection Act 2019 when the bank's act or omission is a deficiency in service or an unfair trade practice. A parallel remedy exists before the banking ombudsman, whose powers come from the integrated scheme framed by the Reserve Bank of India - both routes are dealt with by our banking and finance practice. The two routes differ: the ombudsman is quick and free and awards compensation within its limits, while the commission can decide larger claims and enforce its order like a decree. The bank's own written complaint reference is the pivot on which both routes turn.
When this matters
This page is for a customer, borrower or account holder who has already written to the bank and is not satisfied with the reply, or has received no reply at all. It applies to savings and current accounts, fixed deposits, loans and credit cards, and to transactions done at a branch, through net banking or through a card. Read it before you escalate, because the strength of your escalation depends on the paper you built at the first stage.
What counts as deficiency in service
A deficiency is a shortfall in the service the bank was bound to give, not merely a decision you dislike. The common cases are:
- Unauthorised charges - fees, penalties or charges debited without a contract term permitting them, or in excess of the agreed rate;
- Wrongful debit - a transaction you never authorised, a double debit, or a debit left unreversed after you reported the failure;
- Refusal to release documents - title deeds, the no-dues certificate or pledged securities kept back after the loan is fully repaid;
- Delay in settling a closed account - a savings or deposit account left open and misused, or a closure not completed after your written request;
- Mis-selling - an insurance or investment product sold as if it were compulsory for a loan, without disclosure of the terms;
- Failure to act on a stop-payment instruction or a fraud report within the time the scheme and the bank's own circulars require.
Whether a given charge is authorised is decided by the loan agreement, the bank's published schedule of charges and the Reserve Bank's directions. Attach the clause and the schedule you rely on; a bare assertion that a charge was unfair rarely succeeds.
Ombudsman route or consumer commission route
Choose deliberately:
- Banking ombudsman. Free, informal and quicker. It is reached after you first complain in writing to the bank. It awards compensation within the monetary limits the scheme sets, so it suits smaller, clear-cut claims.
- Consumer commission. Suited to larger claims, to disputes that need evidence and cross-examination, and to cases where you also want compensation for mental agony and cost. Its order is enforced like a decree.
- Both? Pursuing one does not automatically bar the other, but do not split an identical claim into two forums. Pick the forum that can give the relief you most need, and keep the other in reserve.
Documents to attach
- the bank's written reply, or proof that no reply came within the time the scheme allows;
- the internal complaint reference number and the date you raised it;
- account statements and the transaction entries you dispute;
- the loan agreement, the schedule of charges, or the deposit receipt as relevant;
- your correspondence with the branch, the nodal officer and the grievance officer;
- a short affidavit setting out the facts and the amount you claim;
- the fee prescribed for the value of the claim.
Reliefs
The commission can direct reversal of the wrongful debit, refund of the unauthorised charge with interest, release of the withheld documents, correction of the account, and compensation for the loss and mental agony caused. Where the bank has mis-sold a product, the commission can direct cancellation and refund of the premium or subscription. Quantify each head separately and support each figure with a document.
Timelines, limitation and the complaint reference
A consumer complaint must be filed within two years from the date the cause of action arises, under Section 69 of the Consumer Protection Act 2019. In a banking case the cause of action usually runs from the wrongful debit or from the bank's final refusal, so preserve the first written complaint and every reply. The bank's internal complaint reference matters for two reasons: the ombudsman will not entertain a matter that was never put to the bank, and the commission expects you to have given the bank a fair chance to cure the defect. Keep the reference number, the date and the mode of the complaint, and carry them into the complaint; if the bank still does not cure the defect, contact us.
Common questions
Do I have to complain to the bank first?
For the ombudsman, yes - the scheme requires that you first raise the matter with the bank and allow its time to respond. For the commission there is no absolute rule that you must, but a prior written complaint is strong evidence that the bank had notice and refused to cure the defect. Always make the first complaint in writing and keep proof of it.
The bank says the charge is in its published schedule. Is that the end?
No. A published charge is authorised only if the schedule or the agreement actually covers that charge and the bank applied it correctly. If the entry does not match the contract, or the same charge is levied twice, or a charge is introduced after your contract, the fact that it appears in a schedule is not a defence.
Can I claim compensation for mental agony and harassment?
Yes, you may plead compensation for mental agony, harassment and the time lost, and the commission may award it within reason. Keep the claim honest and tied to the facts - for example, the repeated visits, the bounced standing instructions or the effect on your other commitments - rather than a round figure picked arbitrarily.
What if my account was frozen or a lien placed without notice?
A bank may place a lien or freeze an account only where a law, a court order or the account terms authorise it. If none applies, and the bank does not remove the lien after your written request, that is a deficiency. Attach the communication refusing or ignoring your request and state the specific loss the freeze caused.
FileX Advocates & Legal Consultants, Kolkata, drafts and files these matters before the Calcutta High Court, City Civil and Sessions courts, magistrate, family, consumer and tribunal forums. Call +91 7439811422 or WhatsApp us for a free first consultation.