Issue Resolved COMPENSATION! PMJJBY unauthorised activation & cancellation - SBI Savings A/C

[White_Fox]

I have an SBI savings account. They (probably branch employees) activated PMJJBY without my consent. It resulted in a debit of ₹436.00.

Complained to the SBI customer care (screenshot attached), but they said to contact the branch.

Visited the branch the next day. They tried to convince me not to cancel the insurance that it's only a small amount deducted every year. On insisting on cancellation, I was told to submit an application for cancellation of the insurance to the branch.
So went to the branch a day later armed with the application. However, they didn't accept it as the person in charge of such was “absent”.

Replied to the email that application was not accepted. Also, attached the handwritten application to the email.

Voila! After two days, the money was refunded.


SAME PROBLEM FACED IN 2025

Update 1 (15/05/2025)

Issue Resolved Post in thread 'COMPENSATION! PMJJBY unauthorised activation & cancellation - SBI Savings A/C'

May 16, 2025

On 15.05.2025, I noticed in the transactions section of the SBI Yono app that a PMJJBY debit entry of ₹436.00 was present dated 10.05.2025. The description showed the Renewal of PMJJBY. Therefore, I filed a complaint with the SBI Contact Centre through email and attached all the previous communications from last year. (see attachment).

• White_Fox

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Update 2 (16/05/2025)

Issue Resolved Post in thread 'COMPENSATION! PMJJBY unauthorised activation & cancellation - SBI Savings A/C'

May 16, 2025

On 16.05.2025, I received a useless reply from SBI Contact Centre stating the details of the PMJJBY Scheme and advising me to visit the branch to sort it out. I visited the branch the same day and asked the front desk woman to provide me with the complaint register. She directed me to the manager's office, where the complaint register was to be present.

Upon asking for the complaint register, the manager's clerk provided me with a blank sheet of paper to write my grievances, which I refused to accept. I insisted on being provided with the complaint register, which led to...

• White_Fox

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Update 3 (17/05/2025)

Issue Resolved Post in thread 'COMPENSATION! PMJJBY unauthorised activation & cancellation - SBI Savings A/C'

May 20, 2025

On 17.05.2025, the deducted amount of ₹436.00 was refunded by the bank.

• White_Fox

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Update 4 (20/05/2025)

Issue Resolved Post in thread 'COMPENSATION! PMJJBY unauthorised activation & cancellation - SBI Savings A/C'

May 31, 2025

On 20.05.2025, the matter was escalated to the Local Head Office (LHO), Kolkata. I requested them to provide me with a written assurance that no such unauthorised activation of any insurance and unauthorised debit of insurance premium shall take place in the future without the explicit consent of the account holder.

• White_Fox

Update 5 (28/05/2025)

Issue Resolved Post in thread 'COMPENSATION! PMJJBY unauthorised activation & cancellation - SBI Savings A/C'

Jun 2, 2025

No response was received from LHO, Kolkata. Therefore, the complaint was further escalated to the Zonal Office, Kolkata on 28.05.2025.

• White_Fox

Update 6 (18/06/2025)

Issue Resolved Post in thread 'COMPENSATION! PMJJBY unauthorised activation & cancellation - SBI Savings A/C'

Yesterday at 8:28 PM

As there was no response from the SBI Nodal and Zonal offices, the matter was escalated to the RBI Ombudsman on 01.06.2025. The RBIO complaint was closed on 17.06.2025 with a compensation of ₹10000. I am impressed by the efforts of the RBIO in taking the appropriate action.

• White_Fox

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[CosmicCat]

As there was no response from the SBI Nodal and Zonal offices, the matter was escalated to the RBI Ombudsman on 01.06.2025. The RBIO complaint was closed on 17.06.2025 with a compensation of ₹10000. I am impressed by the efforts of the RBIO in taking the appropriate action.

Amazing! I'm envious that RBIO Kolkata closed your case within 16 days with a satisfactory resolution. In my dad's case, also registered with RBIO Kolkata on 05-05-2025, he got an email response from them containing the reply of the branch on 16-05-2025 and it sought his counter-attack against the Branch Manager's response. My dad replied to them on 17-05-2025 and it has been over a month, yet he is yet to receive any response from RBIO. The RBI complaint is still open.

My dad's case was also serious. SBI didn't honour his Form 15H preference for one quarter, and deducted an unauthorised TDS of around ₹5,000 from the principal amount (not interest) of an unrelated FD whose Form 15H wasn't separated separately and was closed on the same financial year. That unauthorised deduction caused a dip from his principal amount of the FD by ₹5,000 upon its maturity. Say, the maturity amount of the FD was ₹50,000. He got around ₹45,000 instead when it matured.

 

[White_Fox]

Amazing! I'm envious that RBIO Kolkata closed your case within 16 days with a satisfactory resolution. In my dad's case, also registered with RBIO Kolkata on 05-05-2025, he got an email response from them containing the reply of the branch on 16-05-2025 and it sought his counter-attack against the Branch Manager's response. My dad replied to them on 17-05-2025 and it has been over a month, yet he is yet to receive any response from RBIO. The RBI complaint is still open.

My dad's case was also serious. SBI didn't honour his Form 15H preference for one quarter, and deducted an unauthorised TDS of around ₹5,000 from the principal amount (not interest) of an unrelated FD whose Form 15H wasn't separated separately and was closed on the same financial year. That unauthorised deduction caused a dip from his principal amount of the FD by ₹5,000 upon its maturity. Say, the maturity amount of the FD was ₹50,000. He got around ₹45,000 instead when it matured.

Regarding the Form 15H, these are generally caused due to the lackadaisical mindsets of bank employees, which come under "Deficiency of service" of RBI-IOS. I hope the reply to RBIO was done in a structured and concise manner (preferably in bullet points).

 

[CosmicCat]

these are generally caused due to the lackadaisical mindsets of bank employees, which come under "Deficiency of service" of RBI-IOS.

These stuff are usually automated in the CBS (Core Banking System) used by the banks and usually require no human intervention. Pretty sure it was a technical error on their part, which the Branch Manager either overlooked when complained or deliberately ignored to beat around the bush. I have provided the detailed information in this thread.

I hope the reply to RBIO was done in a structured and concise manner (preferably in bullet points).

Yes, it was. But even if the information is written in bullets, they can still overlook the details if they are too much overloaded or are tired while reading the complaint.