A Canara Bank error while remitting New Zealand dollars (NZD) 40,002 towards a student’s education at the University of Canterbury in New Zealand left his parents paying Rs 22,019 more than they should have, prompting a consumer body in Punjab to order the bank to refund the excess amount with 6 per cent annual interest and pay Rs 15,000 as compensation for deficiency in service.President Jagdishwar Kumar Chopra and member Mandeep Kaur of the Amritsar District Consumer Disputes Redressal Commission were hearing a complaint filed by one Navbinder Kaur and Gurbir Singh against the bank over an erroneous international remittance made towards their son’s educational expenses. The bank failed to appear despite being served notice and was proceeded against unilaterally before the commission allowed the complaint.“A bank acts as a service provider and is under a legal obligation to exercise due care. The act of the opposite party in remitting the amount in US Dollars instead of New Zealand Dollars squarely falls within the ambit of ‘deficiency in service’,” the commission said on July 9.The case stemmed from a foreign education fee transfer in which the complainants had specifically instructed Canara Bank to remit the tuition fee in New Zealand dollars. Instead, the bank mistakenly processed the transaction in United States dollars (USD), resulting in an excess debit from the family’s account. Despite repeated requests seeking rectification, the bank allegedly failed to refund the excess amount, forcing the family to approach the consumer commission.‘Clear instructions ignored’According to the complaint, Navbinder Kaur approached the bank to remit NZD 40,002 towards the educational expenses of her son studying at the University of Canterbury.Also Read | ‘Stranded’ before US university orientation, airlines to pay father, son Rs 1.6 lakhThe complainants submitted all mandatory documents, including Form A2, the Liberalised Remittance Scheme (LRS) declaration and outward remittance forms, clearly mentioning that the payment was to be made in New Zealand dollars. However, instead of remitting the amount in NZD, the bank transferred USD 23,933.23.The commission noted that the transaction resulted in a debit of Rs 20,64,121 from the complainants’ account at an exchange rate of Rs 86.24 per US dollar. Had the bank processed the transaction in the instructed currency, the amount payable would have been Rs 20,42,102 at the prevailing exchange rate of Rs 51.05 per New Zealand Dollar.Story continues below this adThe mistake caused the complainants a direct financial loss of Rs 22,019, apart from inconvenience and mental harassment, they argued.‘Repeated requests unanswered’The complainants submitted that they immediately brought the mistake to the bank’s notice and sought correction and refund of the excess amount. Despite repeated requests, the bank neither corrected the transaction nor refunded the additional amount debited from their account.The forum observed that Canara Bank did not contest the proceedings despite being served notice, leaving the complainants’ documentary evidence unchallenged.Proof showed negligence: PanelAfter examining the record, the commission found that the outward remittance documents clearly instructed the bank to remit the money in New Zealand dollars. The SWIFT delivery report established that the remittance had instead been made in United States dollars, while the bank statement reflected the higher debit amount. The complainants’ written request seeking rectification also demonstrated that they had promptly informed the bank after discovering the mistake.Story continues below this adAlso Read | Lathicharge not for intimidating protesters: Former government advocate Sidharth LuthraThe commission held that the bank failed to exercise the due care expected from a financial institution and that its conduct amounted to deficiency in service under the Consumer Protection Act, 2019.Allowing the complaint, the commission directed the bank to refund the excess amount of Rs 22,019 along with 6 per cent annual interest from the date of the wrongful debit until payment. It also awarded a lump sum of Rs 15,000 towards compensation and litigation expenses, observing that the complainants had been compelled to engage legal counsel and initiate consumer proceedings because the bank failed to address their grievance despite repeated requests.The commission directed the bank to comply with the order within 45 days of receiving its copy, failing which the complainants would be entitled to execute it through the commission.Consumer takeawayConsumers making overseas education fee payments should preserve copies of remittance forms, currency instructions and bank acknowledgments. If a bank remits money in the wrong currency or contrary to written instructions, resulting in a financial loss, consumers can seek a refund, interest and compensation under the Consumer Protection Act.Story continues below this adFor consumer-related grievances, individuals may contact the consumer helpline in their respective states and Union territories (Punjab: 0800-22577) or call the National Consumer Helpline at 1915 for assistance.