Yogi (MGR) 29 August 2011

Bank home loan/salary issue and cheque bouncing

With reference to the discussion with the bank and trial mail, I resigned from the bank on 27.08.2010 and after serving one month notice period Receiving Letter was issued to me by the CO on 28-09-2010 which clearly stated that "You shall be relieved after confirmation from the Central office". The said confirmation is still pending till date despite my regular followups" . I have been requesting the bank for providing me the formalities for the settlement of all dues but the same has not been done till date.

I would like to bring to your notice that the bank didn't bother to inform me about the formalities /settlements from 28-09-2010 to 18-07-2011 despite the bank having all my communication address to communicate me for all queries.

Then on 16-10-2010 I left the country after informing the CO and HR Deptt. and after few months in May 2011 it came to my notice that the bank has been crediting the salary into my account even after my resignation.Therefore I immediately informed the Central office in good faith to stop crediting the same. Central Office appreciated the effort as still they were not aware of crediting of salary because of non updation of my resignation letter till May 2011.

Despite asking for Salary breakup and informing the bank about such a blunder, the bank rather than rectifying the mistake still didn't provide me the break up of the salary and the bank kept on crediting it till May-June 2011 . I have been depositing Rs 16000/- PM as cash since Sept 2010 in my Saving account and Rs 17000/- since June 2011 in my Home Loan Account which clearly states my intention toward paying the EMI on time.

Also I have been requesting for clarification whether the recovery of Salary be on Gross Pay or Net Pay and if the same is to be recovered on Gross Pay basis who will bear the tax implications.

Therefore on two separate instances the bank issued me a notice for the settlement of Home Loan on 18 July 2011 which clearly states the amount outstanding for Rs 14,69,598. I agreed to settle the same provided the details be furnished to me but the same was not done at bank's end. Then again after 10 days on July 28,2011 second recall notice was issued to me despite the ongoing discussion.

I am ready to settle the loan since my resignation but because of delay on bank's part, this issue has been lingering due to which I have already suffered lot of humiliation because of no fault from my end.

Also the branch has debit freezed my account without my consent and as a result two of my cheques got dishonourned despite the standing balance in the account. The details of dishonoured instruments is provided below.

1 . Cheque No.5909954 dated 30-07-2011 amount 15000/- from my account got

dishonoured with the reason Funds Insufficient. The balance was available in

my account, but due to Bank's negligence and inefficiency, the cheque got
dishonoured and now the counter party has held me responsible for the same
due to which my reputation has been spoiled in the market.

2. Every month my account is debited with amount of Rs. 1000*3 for Mutual
Fund Investments Systematic Investment Plan. Both the amounts are being
deducted since 27.05.2010. Due to debit freeze, the SIP instalments of
August could not be processed. The Bank should have checked this mistake at
its end. Due to Bank's negligence in freezing the account without my
permission has led to financial and irrepairable reputational loss to my
image

3. As per discussion held with the branch, I have always been willing to

hand over the DD for the Home loan outstanding to Rs .14,40,000 on
immediate basis on the terms that NOC (Non Objection Certificate) along
with the documents will be handed over to me same day on submission of
Demand Draft so that the same could handed over to the other bank.

My Questions :

1. Should I am Liable to pay Commercial Rate?

2. The bank should recover excess salary on the basis of Gross Salary or Net Salary?

3. What legal actions I can take ?

4. Do banks have power to recover excess salary ?

5. What actions I can take against bank for cheque bouncing and SIP investments rejection ?

6. Can Bank DebitFreeze/lien my account despite depositing EMI on time and without my consent?

Reply Follow

1 Replies

Kumar Doab (FIN) 30 August 2011

If all communications mentioned by you are in writing and you have the acknowledgment, then you can establish that bank is at fault and has damaged and lowered your prestige and credibility.

Bank can recover the excess amount of salary paid, however bank should now supply you F&F and demand excess amount from you. Although bank has appreciated you for informing them their action is penultimate, and offending.

If you have been depositing EMI's there is no reason to ask for interest/prepayment rate more than agreed as in loan agreement.

It shall be appropriate to structure your communication carefully and submit an appeal to the Chairman of the bank with a copy to appointing authority and ask for the settlement of matter in your favour as suitable to you say within 15 days. If you are aggrieved further e.g. if your name is included in the list of defaulters in CIBIL, you may ask the bank to beg apology in writing.