I had an Recurring deposit with SBI which matured recently. I missed to pay 3 installments during the starting six months of the RD tenure so the branch has charges a 'Debit Branch Penalty' i.e. 75% of the interest earned as the penalty for the 3 payments missed.
I raised the issue with the branch manager and she herself had to understand the calculation of the penatly from a senior SBI official since the policy is unclear. The policy is as under:
Whenever a depositor fails to pay the installment on due date for three consecutive months the account shall not be closed and service charge of Rs 10/- is applicable. The penalty charged on delayed payment of instalment shall be
i) Penalty in case of delay in payment of installment of RD of 5 years or less shall be Rs 1.50 for every Rs 100 per month.
ii) Such penalty shall be Rs 2.00 for every Rs. 100 per month for the account on more than 5 years.
I want to pursue the case in the district consumer forum as their policy terms are unclear and nevertheless, any policy doesnt justify deduction of 75% of interest when out of 12 installments, 9 have been paid regularly.
Should I pursue in court. The interest penalty is Rs25,000.