Calcutta High Court Questions HDFC Bank’s Customer Service
The Calcutta High Court recently expressed dissatisfaction with HDFC Bank’s handling of Trinamool Congress (TMC) leader Abhishek Banerjee’s account blocking. The court’s critique came after Banerjee’s counsel, Senior Advocate Ayan Bhattacharya, raised concerns about the sudden suspension of Banerjee’s bank account and associated credit and debit cards. This incident occurred coincidentally on the same day the Supreme Court allowed Banerjee to travel abroad for medical treatment.
According to the bank’s communication, Banerjee’s account was put on hold pending a ‘due diligence exercise’. The bank required Banerjee to visit a branch to address the issue, as explained by Bhattacharya. In response to the court’s inquiry, HDFC’s counsel indicated that additional Know Your Customer (KYC) documentation was needed from Banerjee.
Judge Questions HDFC’s KYC Procedures
Justice Krishna Rao raised concerns about the necessity for Banerjee’s physical presence for KYC verification, questioning why the bank couldn’t facilitate this process online. “Your bank is not on e-KYC? Your bank is very keen to see the person come personally,” Justice Rao remarked, highlighting that many government services are now conducted online. Rao questioned the bank’s approach and asked when the issue would be resolved.
Bhattacharya noted that Banerjee’s KYC re-verification was scheduled for December 2026, making the current request unusual. HDFC’s counsel explained that the current KYC requirement was linked to cases involving the Enforcement Directorate (ED), which had triggered the system to block the account.
Resolution and Court Directives
The court noticed that this information was not initially disclosed, leading Justice Rao to question the consistency in HDFC’s communications. HDFC’s counsel eventually proposed that a bank official could visit Banerjee’s residence to complete the KYC process, noting that the account’s temporary suspension prevented online verification.
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The court recorded this proposal and directed Banerjee to provide all necessary KYC documents promptly. Furthermore, the court ordered HDFC to coordinate a visit to Banerjee’s residence for KYC completion. The court emphasized that Banerjee should be present during the visit and scheduled a follow-up hearing for the matter.
Call for Quashing HDFC’s Actions
Senior Advocate Bhattacharya urged the court to nullify HDFC’s previous communications, describing them as high-handed. He argued that the bank’s regulations necessitated prior notification before account blocking or KYC demands. Bhattacharya also requested that Banerjee’s credit facilities be reinstated following the KYC formalities.
Advocate Shounak Mondal assisted Senior Advocate Bhattacharya in the proceedings.
