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BANK DEDUCTED AMOUNT WITHOUR PERMISSION

(Querist) 11 March 2011 This query is : Resolved 
I RECEIVED 25000/- FROM LIC AND I DEPOSITED IT INTO BANK. NEXT DAY AMOUNT IS CREDITED IN MY ACCOUNT BUT AFTER 16 DAYS BANK DEDUCTED 25000/- WITHOUT MY PERMISSION WITH EXCUSE THAT LIC SAYS TO DO IT.
NOW TELL ME IT IS ILLEGAL WHICH SECTION OF LAW & WHAT CAN I DO?
Devajyoti Barman (Expert) 11 March 2011
If it is done without your specific instructions then the Bank is not only severely deficient of service in consequence of which you could claim for damages under the Consumer Protection Act but it has also done a criminal act as a result of which you could initiate criminal proceeding as well.
Arvind Singh Chauhan (Expert) 11 March 2011
I do agree with Barman Sir.
Guest (Expert) 12 March 2011
Dear Prashant,

Naturally you would have received the amount of Rs.25,000/- by cheaque or by credit voucher, not by cash, from an organization like LIC.

BUT, from your query the position does not seem to be clear, as you have not stated whether the credit was made next day at your own request before cleance of the cheque/credit voucher OR in a usual manner ONLY after clearance of the cheque, as credit by clearance normally is not made by the next day by any bank.

However, the position may be different in the aforesaid two situations, as follows.

If credit was given at your request without clearance of the cheque, the credit was liable to be revered back if the cheque was bounced on the stop payment instructions of the LIC. In that case the Bank cannot be held responsible for deficient service.

BUT, if the cheque amount was credited after clearance of the cheque and the bank reversed the credit, definitely the bank would be at fault. You can claim the amount from the Bank, as the Bank was not to adhere any instruction from the LIC after clearance of cheque.

PS Dhingra
Chief Executive Officer
Dhingra Group of Management & Vigilance Consultants
New Delhi-110089
Mobile: 09968076381
[dcgroup1962@gmail.com]

malipeddi jaggarao (Expert) 13 March 2011
Mr.Dhingra is correct. In case of LIC/Govt. cheques the customers do request for release of funds pending collection due to urgent needs and Banks also do accede such requests looking into low risk and interest/commission earned. Later when it sends for collection if the cheque is returned for the reasons whatsoever, it has to recover the money from the customer. In this case, the queriest explains that he has received and deposited the cheque in the account. He did not say whether he requested for release of funds. Otherwise also, the account will be credited but funds would not be released in the cheques for sent for collection pending realisation. The queriest says, it was reversed after 16 days. In such Bank would give him a return memo with the reasons. The queriest has not disclosed full facts. I have advised in this column many times, the querry should contain full facts so that proper guidance will be given. Otherwise the guidance is based on the assumptions of each expert and finally it may lead the queriest to take wrong steps.
Prashant K Gupta (Querist) 13 March 2011
Dear Sir
My account is credited after clearance of the cheque. And after 16 days bank do this.
Now what can i do. I feel that bank do not had rights to deduct a amount which is credited after clearance of the cheque.
Chanchal Nag Chowdhury (Expert) 13 March 2011
The bank is liable both in civil & criminal law for its actions. The best course of action is to file a Consumer complaint before the Consumer court.
RAJU O.F., (Expert) 13 March 2011
Normally LIC has a practice to send in advance the maturity value of policy one month earlier, putting the date of cheque one month later. If the policy holder presented it immediately and in case both the collecting banker and drawing banker, without noticing the actual date of cheque, both the bankers made mistakes. In such situation LIC would be justified, to get the cheque amount reversed before it comes due for payment. But his banker had to inform the customer the actual position and only with his consent such credits had to be reversed.
You may prefer complaint before Banking Ombudsman or the Consumer Court.


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