Yes Bank Ordered to Pay ₹50,000 Compensation for Aadhaar-Based Delay in Opening Account
Yes Bank Ordered to Pay ₹50,000 Compensation for Aadhaar-Based Delay in Opening Account
Bombay High Court rules in favour of Microfibers Pvt Ltd, says bank’s insistence on Aadhaar was unjustified
The Bombay High Court has directed Yes Bank to pay a compensation of ₹50,000 to Microfibers Private Limited, a Mumbai-based company, for unreasonably delaying the opening of a bank account in 2018 due to its incorrect insistence on an Aadhaar card.
The division bench of Justices MS Sonak and Jitendra Jain ruled that Yes Bank had no justification to deny the account opening from April to September 2018, especially after September 26, 2018, when the Supreme Court struck down the mandatory requirement of Aadhaar for bank accounts.
The company had filed a petition in June 2018 after the bank refused to open its account without Aadhaar, despite interim relief from the top court during that period. Though Yes Bank eventually opened the account in January 2019, the Court noted that the delay caused a loss of opportunity to the petitioner.
Microfibers Pvt Ltd had claimed a compensation of ₹10 lakh, stating it was unable to rent out its commercial premises for an entire year due to the lack of a functioning bank account. However, the High Court termed the claim “exaggerated” and declined to award the full amount.
Nonetheless, taking into account the bank’s failure to respond to the compensation claim, and the petitioner’s lack of alternative income, the Court awarded ₹50,000 as compensation, ordering the amount to be paid within eight weeks.
The bench also stated, “Considering these peculiar circumstances, we do not relegate the petitioner to the ordinary remedies.”
The ruling reinforces the importance of adhering to legal and constitutional principles in banking procedures, especially after apex court judgments.
