What's in a name or is it a legal liability?
s.loganathan
(Querist) 23 February 2012
This query is : Resolved
I opened a current account with my bank under the name 'Timbuktu Real Estate' and was given an account number 0012300. Later my Bank under the core banking conversion, without any intimation to me, opens an account styled 'Real Estate Timbuktu'and issues a new number as 0045600. I have been issuing cheques with seal 'Timbuktu Real Estate' and transacting. I am told that the codification process adopted in the computerisation of accounts will not accept even if a single alphabet or number is typed wrongly. Here in my case the nomenclature itself is wholly wrong.
I am also told by friends that the argument hat a new number is generated interalia the original number may be tenable but certainly the system will not generate a new name unless it was opened afresh as a new account. I am baffled, please throw some light on the issue. Also will I ever be liable for the new named account? Can the computer generate new name under the garb of core banking conversion?
Amit Minocha
(Expert) 23 February 2012
there is something terribly wrong with your account. The bank on its own cannot change the nomenclature of the account , pl be careful and ask for a written confrimation letter from the bank for all what it is stating verbally. The reply of bank is not digestible. The computer would not generate new name on its own. Computer has simple procedure of GIGO. What ever is feeded would only be displayed. Be careful !
Raj Kumar Makkad
(Expert) 23 February 2012
Banker cannot change suo-motto without the consent of the account holder so issue a notice and demand to correct the name of your account in consonance with already opened with your banker.
Isaac Gabriel
(Expert) 23 February 2012
A clerical error has occured.You can get it corrected at the bank itself.Regarding the change in No.it might be due to the overall changes to facilitate core banking.
adv. rajeev ( rajoo )
(Expert) 24 February 2012
Your friend is right. Contact the manager and request them to rectify the mistake.
RAJU O.F.,
(Expert) 24 February 2012
The action of the bank in having changed the name of a/c without the consent and knowledge of the customer was illegal. Meet the Branch manager of the bank and sort out the problem so as to fix the name of your choice. Bank has no authority to change the name of the customer.
Deepak Nair
(Expert) 24 February 2012
Better to contact your branch manager personally. if the issue is not cleared, then issue a nitice to that effect.
This issue may appear as small, but can cause many problems in future.
So, hurry and get it corrected.
s.loganathan
(Querist) 26 February 2012
Thank you Gentlemen!I accept all your views except the part on 'clerical errors'. The Bank was already computerized and core banking transition was just linking all the branches and their activities together to a main system to be controlled centrally. Leaving little or no room for errors, be it clerical or computer. Mr.Deepak Nair is right, the Bank actually, after I took the matter lightly, transferred sums from my other current account and quietly closed that questioned account. Everything would have been trivial, except that by taking away funds that were loaned for a specific purpose, the shortfall created a vacuum in my fund flow and thus several commitments could not be met and the repercussions thereon. On fixing the onus on the Bank for default, the Bank is threatening to withdraw my facilities and take recovery measures. Is this right? What are my legal avenues?
V R SHROFF
(Expert) 26 February 2012
Ask bank to correct it; If not open new a/c
