If you are stuck in such a situation, here is what to do 😥

Mr. Alok Sharma decided to open a savings account at a branch of Navbharat National Bank (NNB) in Amod Nagar, primarily for backup purposes. During the account opening process, the bank staff informed him that a minimum balance of ₹2,000 was required, along with a mandatory insurance policy costing ₹600. Eager to complete the lengthy process, which had already taken over two hours, Mr. Sharma agreed.

While finalizing the paperwork, an employee, Mr. Rakesh Verma, insisted that Mr. Sharma install the “NNB SecurePlus App.” Mr. Verma claimed the app was a mandatory requirement for all new accounts and would be beneficial for future investments or starting a Systematic Investment Plan (SIP). Trusting the bank employee, Mr. Sharma installed and registered on the app.

A few days later, Mr. Sharma was shocked to see a debit of ₹750 from his new account, listed as an “Account Maintenance Charge” for the NNB SecurePlus App. He felt he had been deliberately misled and cheated, first by being forced to buy an insurance policy and then by being tricked into installing a chargeable app under false pretenses. This practice of mis-selling by the bank left him feeling frustrated and victimized.

Advice in such cases 📝

If you find yourself in a similar situation, do not panic. The first step is to formally complain to the bank’s own grievance redressal mechanism. If they fail to resolve the issue, you have strong legal recourse available through the RBI’s Banking Ombudsman scheme and the Consumer Protection Act.

Applicable Sections of Law ⚖️

Such actions by a bank can be challenged under several Indian laws:

• Consumer Protection Act, 2019: This is a clear case of “deficiency in service” and “unfair trade practice.” Forcing a customer to buy an unwanted product (insurance) by linking it to another service (account opening) is illegal.
• Reserve Bank of India (RBI) Guidelines: The RBI has strict regulations against the mis-selling of financial products, including third-party products like insurance. Banks cannot make the purchase of such products mandatory for availing their core services.
• Bharatiya Nyaya Sanhita (BNS), 2023: If it can be proven that the bank employee had a dishonest intention from the beginning to deceive you into paying money, it could potentially amount to cheating under Section 318 of the BNS.

If you are the complainant 🙋‍♂️

To build a strong case, you must act systematically:

• Gather all documents: Collect your account opening form, the welcome kit, bank statements showing the debit, and any written communication or pamphlets you received.
• File a written complaint: Send a formal complaint via email or registered post to the Branch Manager and the bank’s Nodal Officer for grievance redressal. Clearly state the facts, mention the employee’s name if you have it, and demand a reversal of the charges.
• Escalate to the Banking Ombudsman: If the bank does not resolve your complaint within 30 days or you are not satisfied with their response, you can file a complaint with the RBI Banking Ombudsman. This is a free and efficient service.
• Approach the Consumer Court: You can also file a complaint in the District Consumer Disputes Redressal Commission for deficiency in service and unfair trade practices, seeking a refund and compensation.

If you are the victim

As a victim of such mis-selling, your immediate actions are crucial:

• Create a paper trail: Immediately send a written complaint to the bank. Verbal complaints are often ignored and are difficult to prove later. An email is the best way to create a time-stamped record.
• Dispute the transaction: Formally raise a dispute for the unauthorized debit through your bank’s official channels.
• Preserve all communication: Do not delete any SMS alerts, emails, or app notifications related to the transaction or the products you were sold.

How the police behave in such cases 👮

Generally, the police may be hesitant to register a criminal FIR for such matters. They often perceive it as a civil dispute or a service-related issue that falls under the jurisdiction of the Banking Ombudsman or Consumer Courts. They might advise you to approach those forums first. However, if there is clear evidence of a widespread, organized racket of cheating by bank employees, they may be compelled to investigate under the provisions of the Bharatiya Nyaya Sanhita (BNS), 2023, especially after the introduction of mandatory registration of Zero FIRs under the new Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.

FAQs people normally have 🤔

Can a bank force me to buy insurance to open an account?

No. According to RBI and IRDAI guidelines, this practice, known as “tying,” is illegal. A bank cannot make the purchase of an insurance policy a precondition for opening an account or providing any other service.

Will I get my money back?

Yes, in most genuine cases of mis-selling, you are likely to get a full refund. The Banking Ombudsman and Consumer Courts are generally very strict with banks that engage in such unfair practices.

Is a verbal assurance from a bank employee legally valid?

Verbal assurances are very difficult to prove in court. This is why it is essential to get everything in writing or to follow up any verbal conversation with a written communication like an email to create a record.

What evidence is required? 📄

To strengthen your case, you should have the following evidence:

• The bank statement clearly showing the debit for the insurance premium and the app charges.
• The account opening form you filled out.
• Any emails or SMS messages from the bank regarding these products.
• A copy of the written complaint you sent to the bank and any response received from them.
• Details of the employee who assisted you, if available (name, designation).

How long will the investigation take? ⏳

The timeline can vary depending on the channel you choose:

• Bank’s Internal Grievance Redressal: Should be resolved within 30 days as per RBI norms.
• RBI Banking Ombudsman: Usually resolves cases within 30 to 90 days.
• Consumer Court: This process is longer and can take anywhere from a few months to over a year, depending on the court’s workload.

Advocate Sudhir Rao, Supreme Court of India