mistaken credit
Querist :
Anonymous
(Querist) 08 March 2011
This query is : Resolved
In India if a wrong credit is afforded to some account in a bank due to frequent power failure,connectivity problem or unintentional clerical error the banks do not get any police help for quick return of money by the person who withdraws money not belonging to him. Recovery through civil suits takes a long time. The only remedy for the bank staff is to pay the true owner from their own pockets. The wrongdoer usually are not proceeded against because once the true owner gets his money the matter is treated as closed from all sides.This in my view is quite unfair. Can anyone suggest any solutions so that the money is recovered from the person who is not the owner thereof and the true owner get his money quickly? pl give court ruling number/order number.I intend to say that person who does not return money not belogning to him is allowed to enjoy,WHY? There should be some powers with the Police to punish such fraudulent persons.
Y V Vishweshwar Rao
(Expert) 09 March 2011
The Wrong Credit - or - Wrong withdrawal is always followed by counter Debt entry and Recovery . For this Banks will follow the procedure according to the situation and amount involved . In some cases on the next occasion when any credits are made by the said person , the recovery is made form that account . or/ His account will be friezed. There will be general lien on accounts of the customers in favour of bank .
R.Ramachandran
(Expert) 09 March 2011
I completely agree with Mr. YV Rao.
However, I want to point out to Anonymous that the mistakes cannot happen due to frequent power failure or connectivity problem. It can only happen due to clerical error. But the bank employees dealing with money matters are expected to be doubly careful in debiting or crediting the accounts. They also know what will be the effect of such errors. They should thank their stars that instead of disciplinary proceedings being initiated by the Bank concerned, they are being now a days let off with simple punishment of making good the loss to the lawful owners. The responsibility for this type of mistake is to be apportioned between the clerk and the manager concerned. I may sound a bit harsh, but in money matters, it is better to put the things straight across instead of falling into the trap of sympathy factor.
Guest
(Expert) 09 March 2011
I do not agree with the statement, "the wrongdoer usually are not proceeded against because once the true owner gets his money the matter is treated as closed from all sides," as made in the question.
I do not think the Banks would abandon making recovery of over paid amount, except where there is likelihood of some bank official having got involved to connive along with the account holder getting wrong credit.
However, Y.V. Vishweshwar Rao if right in his observation.
malipeddi jaggarao
(Expert) 09 March 2011
There are many reasons for the inaction against the account-holders who enjoy the money of others due to wrong credit by the bank. The actions expected in such situations are:
a) Recover the money if the amount is avaible in the account;
b) Recover whatever is available and freeze the account;
c) communicate with the account-holder whose account is credited wrongly and demand for the deposit of the amount/short fall in the account so that bank can return it to the real owner
d) establish personal contact with the such account holder and assess his intention;
e) If the intention is fraudulent nature, lodge a complaint with the local police
f) If the intention is not fraudulent, explain him the transaction and give reasonable time for refund obtaining a written commitment
e) Inform the higher authorities with comments on staff involvement.
But in normal course, no Branch Manager would take the above steps and leave it to the staff involved. Generally the staff pursue the matter and if find difficult, they make good of the money and continue their efforts to recover from the account holder and some time give-up the matter.
The reasons are many. The Branch Manager, if he believes that there is no intentional staff involvement, he would like to save them from unnecessary disciplinary actions that are to be faced by the staff involved. The executives of the bank do not have eyes and ears. Without assessing the intentions of the staff, they initiate disciplinary actions against the staff involved without even looking into their track record. The Branch Manager also wish to avoid police interrogations. Who are at wrong side? The customer who received the wrong credit? Not always. Many customers bring such incidents to the notice of the bank. Some utilise the money without knowing about the wrong credit and might not be in a position to return the same immediately. Of course some entertain the fraudulent intentions. The staff involved? No. Generally even if they have fraudulent intention, this is not the way they choose. After all, error is human. Then why inaction against those who entertain fraudulent intentions? The reply the attitude of Bank executives who would not hesitate to initiate disciplinary actions against its own employees without looking into their track record and without assessing the intentions. What is the role of employees unions? Nowadays, no union pursue the interests of its employees. They are the henchmen of their managements. These are the real reasons for the inactions against such account holders in India.
