New Delhi, Aug. 14 -- A fixed deposit is generally considered one of the safer avenues for parking savings, but what happens if a bank does not return the money after the FD matures?

A recent Kerala High Court ruling has underlined that banks handling public funds have a responsibility to make timely payments to depositors. The case involved a Thrissur depositor whose Rs.5 lakh fixed deposit matured in 2015 but remained unpaid for years.

The Kerala High Court, in its June 2, 2026 judgment, upheld an order directing the co-operative bank to return the Rs.5 lakh along with 12% interest and Rs.10,000 towards cost and compensation. The court also allowed the bank six months to comply with the order.

The depositor, Sethumadhavan of Mullamku...