# The dispute began in 2012 when a yarn processing business unit sought to transfer its overdraft facility from Bank of India to Standard Chartered.

*fintech · news · 2026-04-06 · ThePrint*

## Key points

- The SCDRC upheld a ruling against Standard Chartered Bank for charging interest on undisbursed funds.
- Standard Chartered failed to refund a Rs 6,50,000 processing fee after a failed transaction.
- The bank imposed interest on a 'ghost balance' despite the funds never leaving its control.
- The commission clarified that no legal transfer of funds occurred due to non-compliance with RBI norms.

**Companies:** Standard Chartered Bank, Bank of India
**Countries:** India

[Read the full story on ThePrint](https://theprint.in/india/consumer-commission-pulls-up-bank-for-charging-yarn-unit-interest-on-ghost-balance/2897865/)

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