Pension accounts: strictures on banks
Says pension was granted as a security measure for sustenance at old age
Banks cannot exercise their right of general lien over the amounts available to the credit of customers in pension accounts, held the High Court of Kerala on Tuesday.
The court issued the order in a petition filed by a former employee of Bharat Sanchar Nigam Limited, who had defaulted a vehicle loan from the Puthuppally branch of the State Bank of India. Though the bank had proceeded against the car, the proceeds were insufficient to cover the liability and the bank obtained a decree for the realisation of the amount due from him.
The bank also issued him a notice stating to set off the credit balance and the future credits in the pension account of the petitioner.
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