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Business
Jabalpur Commission Orders Central Bank of India to Repay ₹1.57 Lakh for Unissued Loan
✍️ Amar Ujala · Madhya Pradesh
🗓 01 Nov 2026, 04:01 PM
👁 17
The Jabalpur District Consumer Commission has directed Central Bank of India to refund ₹1,57,059, including 7% interest, for six EMIs that were deducted despite no loan disbursement. The bank must also pay ₹18,000 compensation and legal costs.
The Jabalpur District Consumer Commission issued a ruling against Central Bank of India (CBI) on Tuesday, ordering the bank to return the sum of ₹1,57,059 to a customer who had not received any loan disbursement. The amount represents six monthly EMIs that were deducted from the account, plus a 7% interest charge.
The commission found that the bank had mistakenly debited the customer’s account for an undisclosed loan. As the loan was never sanctioned, the deductions were deemed unlawful.
In addition to the repayment, the bank is required to pay ₹18,000 as compensation for the inconvenience caused, and cover the legal expenses incurred by the consumer.
The decision underscores the need for banks to verify loan disbursements before deducting EMIs and highlights the role of consumer commissions in protecting borrowers’ rights.
The commission found that the bank had mistakenly debited the customer’s account for an undisclosed loan. As the loan was never sanctioned, the deductions were deemed unlawful.
In addition to the repayment, the bank is required to pay ₹18,000 as compensation for the inconvenience caused, and cover the legal expenses incurred by the consumer.
The decision underscores the need for banks to verify loan disbursements before deducting EMIs and highlights the role of consumer commissions in protecting borrowers’ rights.