SBI Seized ₹19.90L FD: Is Your Deposit Safe?

SBI debited ₹19.90 lakh from a widow's fixed deposit to recover her dead husband's loan. The Allahabad High Court ruled this illegal and ordered a full refund. Your FD is not automatically liable for your spouse's loans.

Here's what happened: SBI debited ₹19.90 lakh from a widow's fixed deposit to recover a loan that was solely in her deceased husband's name.. The Allahabad High Court ruled the debit illegal, saying a wife's personal FD cannot be seized for her husband's individual loan liability.. The court ordered SBI to refund the full amount, establishing that banks cannot invoke set-off rights across different account holders without consent..

What you should do: Check if any of your FDs or RDs are marked as 'lien' against a loan — call your branch and ask for a written lien status report.. If your bank has debited your deposit for someone else's loan without your signed consent, file a complaint immediately at bankingombudsman.rbi.org.in.. Review your FD account opening form — remove any third-party lien clause added without your explicit written approval, especially on joint accounts..

A bank's right of set-off is legally valid only when the borrower and the depositor are the same person. A spouse, parent, or child is legally a separate individual — their loan cannot touch your FD.