Remittance in wrong account
Tanaaz shaik
(Querist) 22 July 2014
This query is : Resolved
Dear Experts,
Firstly i would like to thanks you all for your generosity. my query is that i have two brothers, 1st work in saudi and 2nd in kuwait. 5 years back my elder brother name Abdul shah (1) had applied for loan in Andhra Bank, Goa. and both brothers had decided to pay the loan. now from past 1 year my brother (2) who is in kuwait sending remittance directly to andhra bank in the wrong account. when we check the statement we were shocked to know that my amount was not hitting in the correct account of my elder brother, and the loan amount has been charged with interest. so my queries are a) is it not bank duty to let us know about the wrong account? b) how can a bank accept and deposit the said remittances in to wrong account, who is not the same name as my Abdul shah? how to get back the amount? can we file a case of fraud? please reply thanks in advance.
Vijyant Nigam (09807349001)
(Expert) 22 July 2014
Deficiency in service by bank. Give legal notice. File consumer case with all evidences.
Anirudh
(Expert) 22 July 2014
I don't think there is any deficiency of service by the bank. The querist has to come out with complete and detailed facts, which he has not done so far.
Guest
(Expert) 22 July 2014
First of all check from the bank if the wrong account with different name has really been given credit and what reason for wrong credit is being afforded by the bank officials? That information is quite necessary.
Secondly, intimate what is the mode of remittance by your brother from foreign bank?
Only recently early this year I successfully dealt with a similar case of a client.
Guest
(Expert) 22 July 2014
I am not in favour of issue of a legal notice in haste before you become aware of the inside information of the bank and correctness of remittance process on the part of your brother. By a hasty notice, you can only spoil your case. Moreover, not being a remitter, you can't issue any legal notice to bank.
Sudhir Kumar, Advocate
(Expert) 23 July 2014
Based on given facts I am not able to agree with Mr Vijayant Nigam.
when a remittance is being sent for "X" account then bank is not sup[posed to check whether it is for "Y" account.
Given facts (as described) do not give any irregularity whatsoever on the part of bank. Given facts indicate that your brother had been erroneously making a charity to unknown person.
Or else the details sought by Mr Dhingra be provided.
Advocate. Arunagiri
(Expert) 23 July 2014
Whether remitance was made
1. by mentioning the account number and also by mentioning the name of the beneficiary.
or
2. the money was directly paid to the bank's loan account.
based on these info I may be in a position to give my opinion.
Rajendra K Goyal
(Expert) 23 July 2014
Few necessary information not provided:
a) Whether your brother mentioned correct account no. and name with the remittance ?
b) What steps the Bank has taken ?
c) Whether the account holder in whose account the remittance was credited, has withdrawn the amount?
d) What is the mode of remittance?
In online transfer sometimes the amount is credited directly in the mentioned account and system is concerned with the account no. only and not name.
If the remittance is credited in wrong account, ask the Bank to debit the account immediately and credit in correct account after satisfaction.
Raj Kumar Makkad
(Expert) 23 July 2014
Reply the relevant questions raised by expert Rajender Ji and then only expect proper reply.
M/s. Y-not legal services
(Expert) 24 July 2014
How it's possible to remit in to one another account.
If your brother mentioned his correct account number mean it would not be happen.
Apart from this if your brother kept the proof for the remitted money, it is can be recovered.
Guest
(Expert) 24 July 2014
Mr. Thangapandian,
Wrong credits are possible, as either the bank officials see only the account No. by overlooking the name of the payee or their software is faulty, which recognizes only the account No. while accepting the credit. Contrarily to avoid responsibility on the part of the bank, their forms provide a small note below the form for not holding responsible for wrong credit on account of wrong particulars given by the remitter, which the normally remitter does not read carefully.
Tanaaz shaik
(Querist) 24 July 2014
Whether remitance was made
1. by mentioning the account number and also by mentioning the name of the beneficiary.
Ans: correct name but wrong account no.
or
2. the money was directly paid to the bank's loan account.
Ans: yes
Few necessary information not provided:
a) Whether your brother mentioned correct account no. and name with the remittance ?
Ans: correct name but wrong number
b) What steps the Bank has taken ?
Ans: they have refund the amount but charges the interest on loan account.
c) Whether the account holder in whose account the remittance was credited, has withdrawn the amount?
Ans; no
d) What is the mode of remittance?
ANs: from kuwait bank to bank.
Guest
(Expert) 24 July 2014
Really shocking, you want to get legal advice on wrong and contradictory information. You wanted to know "how to get back the amount, but now say contrarily that they have refunded the amount. You wanted to know "can we file a case of fraud, but say "correct name but wrong number."
From your information that they have refunded the amount that clearly reveals that they had not credited the wrong account number, rather kept the amount under suspense due to not being clear about account number. So, instead of appreciating their vigilant action for not giving credit to wrong account number, you want to sue them for fraud.
By the way just make clear, in your views what fraud they committed with your brother, when your own brother was at fault and the bank has not credited the amount to any wrong account?
There may be tens of same name persons having loan account with the bank. Do you think they should have dreamt in whose account they could correctly place the funds when your brother himself quoted wrong account number?
Had they credited the amount in to account number quoted by your brother, whatever trfind you have received would not have been possible for months or even years together, as that amount could have been quite difficult to be recovered from an account already having minus balance.
About interest on your brother's account, there being no credit on account of remittance to a wrong account, the same calculated on the outstanding amount in that account is not possible to be waived off due to conditions of the loan.
But still, if you want to file a case for fraud, you can feel free to try your luck, but may probably not be able to establish your claim for interest on wrongly parked funds, unless the bank agrees on personal humble request that too if their rules privide so.
Tanaaz shaik
(Querist) 24 July 2014
Thank you Mr. Dhingra Sir, much appreciate your response. refund of amount was the latest update i got from my brother. question is interest charges are for no reason as to why my brother is accountable?
Guest
(Expert) 24 July 2014
You are welcome, but any time you feel the need of solution to any of your problem, come forward only with the accurate and complete information. Any wrong information can lead to wrong advice, which can prove to be very costly for you in the court of law.
Raj Kumar Makkad
(Expert) 24 July 2014
Your brother cannot be held accountable as he is not responsible for the wrong act in the light of given facts by you.
Anirudh
(Expert) 24 July 2014
Dear Tanaaz,
You say why interest charges is to be paid on the loan account, as according to you there is no fault on the part of your brother.
If mentioning wrong account number is not a fault, then what is a fault?
Because of the wrong account number, the amount could not be credited to the loan account and the balance in the loan account remained as it is. Therefore on the balance lying in the loan account, interest is payable.
Sudhir Kumar, Advocate
(Expert) 25 July 2014
Apparently now since bank has refunded the money they have conseded error.
One cannot be benefited by now folly so bank is not justified in retaining interest.
Guest
(Expert) 25 July 2014
I disagree with Shri Sudhir Kumar. Mistake on the part of the remitter cannot be attributed on the bank. There would have been a mistake on the part of the bank only when the bank would have credited the amount to wrong account instead of the mention of correct name of the remitter. The querist has not confirmed credit to wrong account despite my query two days back.
Raj Kumar Makkad
(Expert) 25 July 2014
If the ban has credited the amount in the same account number then it cannot be penalized.
Tanaaz shaik
(Querist) 25 July 2014
Thank you experts,i agree my brother made a mistake by writing wrong account no. on the deposit slip in kuwait bank, but how is it possible that if the Name of Beneficiary and account number is not matching then bank should inform atleast the remitter bank or the amount should be returned back at same time, they should not hold our amount for so long, and my brother in kuwait enquire in his bank that they also did not got any information or intimation that the amount went to wrong account number,
This is what how I feel,
What is your opinion,
Guest
(Expert) 25 July 2014
Better send legal notice to the bank for payment of interest on the amount kept unadjusted with the bank.
Raj Kumar Makkad
(Expert) 25 July 2014
When you have admitted the guilt of your brother, nothing more remains to be added.
