A bank demand draft was dishonoured. Is it a deficiency in service?

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Yes. A dishonour of draft is a lapse or omission on the part of the bank which amounts to deficiency of service as under Sec. 2 (1) (g) of the Consumer Protection Act, 1986.


The affected party can successfully prefer a complaint against the bank.


The same view was held in N. Raveendran Nair Vs. Branch Manager, State Bank of India, 1991 (2) CPR 45, p. 47 (Ker. SCDRC)

Last Updated On January 30, 2018
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