Postal banking system needs modernisation: Maharashtra Consumer Disputes Commission

The State Consumer Disputes Redressal Commission has called for modernisation of the Indian Postal Service’s banking system. The Commission’s suggestion was made

The State Consumer Disputes Redressal Commission has called for modernisation of the Indian Postal Service’s banking system. The Commission’s suggestion was made during its ruling on an appeal against the complaint of a former Army man, who said that the Post Office, along with the State Bank of India (SBI) and Bank of India (BoI), was responsible for delaying clearance of his cheques.

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“In respect of grievances regarding internal machinery and banking practices on the part of the Post Office for want of modernisation of banking practices, there may be some errors which may have occurred on account of reasons such as want of sufficient staff, and need to modernise the banking system. That has to be improved by the authorities concerned in the Central Government of India,” the Commission stated as it exonerated the Post Office from payment of any compensation to the complainant.

The Post Office, SBI and BoI had approached the Commission against the order of the District Forum, Sangli, to collectively pay the complainant ₹1 lakh for delays in honouring cheques issued in 2015 and 2016.

As per the case of the complainant, he had booked a flat for which he was required to make regular payments to the builder. On November 4, 2015, he issued a cheque from his postal savings account for ₹2.30 lakh which he deposited in his SBI account. The cheque was only cleared 17 days later on November 21.

The complainant claimed the banks charged him extra and caused delays in honouring his cheques. He also accused the Post Office of mismanagement. He claimed that there were wrong entries in his bank statement.

The Commission, while dealing with the complaint against the Post Office, observed, “It is common knowledge that post offices in India in the banking field had not made much progress as per modern banking practices until recently when the Central government took initiatives to improve the postal banking services.”

The Commission found that there was no delay by BoI in honouring the cheque and hence, exonerated the bank from payment of the fine as well. It asked the SBI to pay the fine amount within 30 days, failing which an interest of 12% would apply.