High Court rebukes SBI for deducting ₹19.90 lakh from a widow's fixed deposit to recover her husband's loan

The Lucknow Bench of the Allahabad High Court has strongly rebuked the SBI. The bank had deducted ₹19.90 lakh from the fixed deposit of a widow to recover her late husband's personal loan. The court described this action as a despicable violation of banking policy and completely illegal.

The High Court clarified that banks are custodians of their customers' money, and such secret recovery is entirely unlawful. The court has ordered the SBI to return the full amount to the woman, along with applicable interest, within four weeks. The bank must also pay ₹1 lakh as punitive compensation.