Liability of banker for wrongful remittance
Sanjay Kulkarni
(Querist) 08 June 2015
This query is : Resolved
Dear Friends,
I had given certain amount to my bankers for making NEFT to an account in a different bank. While filling the challan account number and name of party is written correctly on counterfoil, but in the other part of the challan (bankers copy)only last digit of the account number is missing, though the name is correct. The receiving bank has credited the amount to a third party apart from the payee. The payee bank is not giving the name of the account where the money is credited.
Please inform what remedy I have? and against which bank? My banker informed me after two days that the payee bank has wrongfully credited a different account, but did not initiate correspondence for almost a month.
Thanking you,
SAINATH DEVALLA
(Expert) 09 June 2015
Any wrong credit or debit by any bank will be reverted back,within 48 hrs.In this age of computerization every transaction is on record. NEFT transaction will not be completed unless the name as well as the account number match in the receiving bank.How can they credit to a third party?U said the last digit of the a/c no is missing in the Banker's challan ,even then it cannot be credited to a different account.Hence something is missing in UR query.
malipeddi jaggarao
(Expert) 09 June 2015
How can you say that in the counter foil name of the party is written correctly and in the bank's NEFT application portion last digit of account number is missing? Have you verified in your Bank to this effect? Normally when the IFSC Code of the Branch, account number and name of the beneficiary is not tallied 100%, your banker cannot proceed with the transaction. Even if he proceeds the amount will not be credited and it will come back. As regards remedy:
1) Ask for the NEFT application (Bank portion)and find out the details properly filled in or not.
2) You do not have any remedy with the banker of the beneficiary.
34) It is the duty of your banker to find out where the funds have landed. In any case funds cannot land automatically without manipulation either at your bank or at the beneficiary's bank.
4) You have to request your banker asking him that the funds remitted are not reached the beneficiary and what has happened to the funds.
Meet the Branch Manager and give a copy of complaint that funds have been debited to your account and not reached the beneficiary (after verifying your statement of account - sometimes, the funds will land into the original account after 2/3 days if particulars are wrong). Take an acknowledgement from the Bank Manager. Tell him if the Bank does clarify within reasonable period say within 3/4 days, you are going to complain to their higher authorities.
Rajendra K Goyal
(Expert) 09 June 2015
Your Banker and the designated Banker can sort out for the solution. If not possible you have to take court orders for not allowing the account holder to withdraw the amount till decision of the court.
Kumar Doab
(Expert) 09 June 2015
Your banker is fully deficient.
Press the BM to issue complaint number.
Escalate to his Regional Head, Chairman,MD and make them a party before you proceed further.
Guest
(Expert) 09 June 2015
Although Shri Jaggarao has elaborated much to advise you on the issue, BUT, to be frank, your description does not convince me about it to be a real problem. MORE SPECIFICALLY, WHEN YOU HAPPEN TO BE AN ADVOCATE, as your profile reveals!
Your statement is quite indigestible, when you say, "My banker informed me after two days that the payee bank has wrongfully credited a different account, but did not initiate correspondence for almost a month."
The question arises, if the main portion of the remittance form does not contain complete account No. with last digit of the account number missing, I have my own doubt that transaction would have been possible to be matured, even if the name was correct.
Secondly, without advice of the wrong account No. by your own banker it would not have been possible for the receiving bank to credit the amount to a third party other than the actual payee. Had that been the mistake of the receiving bank, the bank would definitely have rectified the mistake after the mistake coming to their notice.
Anyway, would you like to clarify:
1) Have you taken up formally with your banker and what is his formal response?
2) Have you any time been informed even verbally that they would not take up the matter with the other bank to reverse the wrong credit?
However, if it is the real problem, I can suggest you the remedy, if you send me complete details of the transaction with date-wise events.
malipeddi jaggarao
(Expert) 09 June 2015
I fully agree with the additional remarks of expert Shri Dhingra.
SAINATH DEVALLA
(Expert) 09 June 2015
Me too as it is purely academic.How would his banker inform about the wrong credit by the other bank.That's not his bankers duty.If the transaction is true then it is the headache of the remitted bank to take action for the wrong credit.Hence the query can be concluded here itself.
krishna mohan
(Expert) 10 June 2015
Well advised by experts. Since no action appears to have been taken more than a month written complaint need to have been given. If yes and still no response, you can approach Banking Ombudsman of your State with all details to resolve the issue. If you not you may proceed as advised by experts above.
