Thanks for sharing SC judgment.
------The Regulator RBI has issued guidelines and these are exercised on banks by RBI, Watchdog BCSBI, IBA.
These guidelines are not discretionary on the banks.
Guidelines issued by RBI are mandatory having statutory force.
>> Code of Bank s Commitments to Customers issued by Banking Codes and Standards Board of India and as adopted by the bank
>> Indian Banks Association; Model Deposit Policy
In fact, depositors are the major stakeholders of the Banking System. The depositors and their interests form the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949.
While adopting this policy, the bank reiterates its commitments to individual customers outlined in Bankers' Fair Practice Code
------The issue should be covered under Banking Ombudsman Scheme
Banking Ombudsman Scheme, 2006
FAQs on the Banking Ombudsman Scheme
------Apparently the lien for excess amount of Rs.25000 was marked to safeguard interest etc till full and final payment of dues is made.
Did you ask the bank to explain why it has exercised BL on excess mount and did the bank reply?
These communication especially explanation by the bank should be looked into.
Bank shall need to explain to any forum where you choose to agitate. Therefore pointed and specific communication is build as a matter of record.
Bank has exercised BL and it has probably not set off the amounts by exercising RTSO.
It has collected the payment from you and thereafter it should have vacated the lien.
The communications supplied by the bank to you in the interim should also be looked into carefully.
If the bank did not vacate lien even after collection payment of amounts of full, liability it has certainly caused transgression…………………….
If you have demanded in writing under POD, that Bank should pay compensation as per Compensation Policy of the bank and if bank has declined in writing then bank has certainly not admitted its deficiency that would be eligible for paying compensation.
Therefore you can certainly agitate in a forum of your choice be it BO, DCDRF or civil suite with damages………………………..
The lawyer that has seen all of your docs and has analyzed your inputs can advise you the best.
Before proceed further it shall be appropriate to consult and your lawyer can structure your representation so as to benefit you in the long run as per the relief aimed by you.