A complaint has been raised against State Bank of India (SBI) for blocking a current account for 7 months despite a court order to unblock. The negligence has left the customer unable to run their business.
Complaint Summary : SBI Current Account Blocked for 7 Months Despite Court Order – Customer Left Helpless
| Details | Information |
|---|---|
| Complainant Name | Divya Jashnani (on behalf of her friend) |
| Company/Brand | State Bank of India (SBI) |
| Complaint Type | Account Blocked / Non-Compliance with Court Order |
| Product/Service | Current Account |
| Order No / Service No | Not disclosed |
| Issue Description | Current account blocked for 7 months; no action taken even after court order dated 22 September to unblock |
| Date of Incident | Continuing issue for the past 7 months |
| Company’s Response | No response or action taken despite legal case |
| Additional Comments | Negligence and irresponsibility has made the customer helpless |
Full Complaint Write-Up
A serious complaint has been raised against State Bank of India (SBI) for allegedly blocking a current account for 7 months, leaving a customer unable to run their business.
According to the complainant Divya Jashnani, her friend’s account was initially blocked due to KYC-related issues. Even after completing the KYC formalities, the account was not restored.
The matter escalated legally, and the affected customer filed a case against SBI. The bank reportedly assured the court that the account would be unblocked on 22nd September. However, despite the court order, SBI has failed to comply, and the account remains blocked.
This inaction has caused severe financial distress for the customer, preventing them from carrying out essential business operations. The complainant has expressed strong dissatisfaction, stating that the negligence and irresponsibility of SBI has made common people helpless, especially when dealing with the country’s largest nationalized bank.
Legal & Consumer Rights Perspective
- Under RBI’s KYC Guidelines, once KYC issues are resolved, banks are obligated to restore normal account operations.
- Failure to comply with a court order may amount to contempt of court, carrying serious legal consequences for the bank.
- Blocking a business account without justified reasons violates the customer’s right to conduct trade and profession under Article 19(1)(g) of the Constitution of India.
- Customers in such cases can also approach the Banking Ombudsman for immediate intervention and seek compensation for losses due to negligence.
Choice4Voice.com’s Role
This complaint has been highlighted through Choice4Voice.com, a neutral consumer advocacy platform dedicated to amplifying the voice of customers when brands fail to act.
We encourage State Bank of India to take immediate action, unblock the account in compliance with the court order, and compensate the customer for the financial losses caused.
Frequently Asked Questions (FAQs)
Q1: Why did SBI block the current account?
A: The account was blocked due to KYC issues, but even after resolution, it was not restored.
Q2: What legal action has been taken?
A: The customer filed a case in court, and SBI assured that the account would be unblocked by 22nd September, but no action has been taken.
Q3: What are a customer’s rights if a bank does not unblock an account after KYC is updated?
A: Customers can file a complaint with the RBI, Banking Ombudsman, or approach the courts for relief.
Q4: Can a bank ignore a court order?
A: No. Ignoring a court order may lead to contempt of court proceedings.
Q5: How can Choice4Voice.com help in such cases?
A: Choice4Voice.com highlights genuine consumer grievances, pressures brands to respond, and spreads awareness about customer rights.
Q6: How long can SBI legally block an account?
A: Accounts may be temporarily restricted for regulatory reasons, but once compliance is completed, banks must promptly restore access.
Q7: What compensation can the customer seek?
A: The customer may seek monetary compensation for business losses, damages, and harassment due to SBI’s negligence.
Q8: Can a business survive without access to its current account?
A: For most businesses, a blocked current account can severely disrupt operations, payments, and vendor management.
Q9: What steps should customers take if their account is wrongfully blocked?
A: Contact the bank in writing, escalate to higher authorities, file a complaint with RBI’s Banking Ombudsman, and seek legal remedy if required.
Q10: What is the role of the Banking Ombudsman?
A: The Ombudsman provides a quick and cost-effective forum for resolving banking-related disputes.
Q11: Is this the first time SBI has faced such complaints?
A: SBI has faced multiple customer service-related complaints in the past, though each case has different circumstances.
Q12: How does blocking a current account impact MSMEs and small businesses?
A: It halts business transactions, damages credibility, and may cause long-term financial stress.
Q13: Can customers demand interest for the period their account was blocked?
A: Yes, if financial losses can be proven, customers may claim compensation including interest.
Q14: What constitutional rights protect business owners in such cases?
A: Article 19(1)(g) provides the right to practice any profession, trade, or business, which cannot be arbitrarily restricted.
Q15: What immediate steps should SBI take in this case?
A: Unblock the account, comply with the court order, issue an official apology, and consider compensating the customer.
Q16: How can other customers avoid similar issues?
A: Ensure KYC documents are always updated, maintain written records of communication with the bank, and escalate unresolved issues promptly.
Q17: What is SARFAESI Act, and can it apply here?
A: SARFAESI deals with recovery of secured debts; in this case, the issue is wrongful blocking, so SARFAESI is not directly applicable.
Q18: Can a writ petition be filed in such cases?
A: Yes, affected parties can file a writ petition under Article 226 in High Court against arbitrary bank actions.
Q19: Does Choice4Voice.com guarantee resolution?
A: Choice4Voice.com does not guarantee resolution but amplifies consumer voice to push companies towards accountability.
Q20: How can SBI rebuild trust after such incidents?
A: By ensuring strict compliance with legal obligations, improving customer service, and offering prompt redressal.
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