SBI Ordered to Pay ₹7 Lakh for Failed Exam Fee Deposit: Win for Consumers & Career Rights

 

SBI Ordered to Pay ₹7 Lakh for Failed Exam Fee Deposit: A Landmark Win for Consumers & Career Rights

By Amarjeet Singh, Advocate @Public Rights Action Network (PRAN)

A recent decision of the District Consumer Disputes Redressal Commission, Kanpur Nagar, has reaffirmed that even small clerical errors by banks can cause life-altering consequences — and banks can be held fully accountable. In a significant judgment delivered on 3 October 2025, the Commission directed the State Bank of India (SBI) to pay ₹7,00,000 in compensation to an advocate whose career opportunity was irreparably damaged due to SBI’s failure to correctly credit his exam fee.

The Case: When a ₹225 Mistake Costs a Career

Advocate Avnish Verma had successfully cleared the preliminary round of the Assistant Prosecution Officer (APO) examination conducted by the UPPSC. To appear for the mains, he deposited the required fee of ₹225 at SBI’s Krishna Nagar Branch on 7 December 2015.

But the branch issued only a generic deposit receipt, without properly crediting the fee to the UPPSC’s designated account. When Mr. Verma attempted to update his payment details on the UPPSC portal on 9 and 11 December, the bank cited “technical reasons” — effectively blocking him from completing the exam form before the 13 December deadline.

This single failure prevented him from appearing in the main exam, resulting in a lost opportunity for a competitive government post.

What the Commission Found

The Commission held SBI guilty of clear deficiency in service, noting:

• The bank’s lapse directly prevented the complainant from participating in the APO-2015 main exam.
• The resulting “career loss is irreparable”, especially since the complainant had previously scored competitively in the APO-2007 exam (just 9 marks below the OBC cutoff).
• The Banking Ombudsman had earlier acknowledged fault and awarded ₹10,000 compensation, which SBI paid along with an apology letter — strengthening evidence of negligence.
• SBI failed to appear before the Commission, leading to ex-parte proceedings.

The Final Order

SBI and the branch manager were held jointly and severally liable and ordered to:

✅ Pay ₹7,00,000 as compensation for career, mental, physical, and economic loss
✅ Pay 7% simple interest from 16 October 2018 until payment
✅ Pay ₹10,000 as litigation costs
✅ Comply within 45 days

This is one of the highest compensation awards for loss of career opportunity arising from banking negligence.

Why This Judgment Matters

1. Banking Errors Are Not “Minor”

The case shows that even a small fee deposit, if mishandled, can derail an individual’s future. Banks must ensure seamless processing of exam, university, and government fee payments.

2. Consumer Forums Protect Career Rights Too

Consumer law is not limited to defective products or wrong billing. When banking services cause loss of opportunity, forums can award substantial compensation.

3. Loss of Opportunity = Real, Quantifiable Harm

The Commission recognised that missing a competitive public exam because of the bank’s fault is not a trivial inconvenience — it is a significant and measurable loss.

4. Non-appearance of Service Providers Won’t Stop Justice

SBI’s failure to appear strengthened the complainant’s case and demonstrated that ignoring consumer notices can backfire.

What Consumers Should Do in Similar Situations

✅ Always ensure fee deposits (UPSC, UPPSC, SSC, college fees, court fees) are credited to the correct beneficiary account.
✅ Do not rely only on generic receipts — demand a transaction-specific acknowledgement.
✅ If a portal or bank error blocks submission, collect screenshots and written acknowledgements.
✅ Immediately escalate to:

• Bank Branch Manager
• Banking Ombudsman
• Reserve Bank of India (RBI) grievance portal
• Consumer Commission (if unresolved)

What Banks Must Learn

• Exam fee deposits are time-sensitive. A 24-hour delay may cost a candidate an entire year — or a career.
• Branch-level negligence can result in multi-lakh liabilities.
• Internal checks, proper receipts, and timely resolution of failed transactions are non-negotiable.

Conclusion

This landmark order is a strong reminder that consumer rights extend to dignity, opportunity, and fair access. When institutions fail, the law ensures that consumers are not left to bear the cost alone. PRAN will continue to highlight such cases to strengthen public awareness and push for more accountable banking and public service systems.

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PUBLIC RIGHTS ACTION NETWORK (PRAN)

     Consumer Rights • Public Health • Accountability • Justice

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