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Rohan (None)     21 March 2014

Cheque dishonored when sufficient funds were available

A cheque of mine which was presented as payment towards electricity bill was returned due to insufficient funds even when sufficient funds were available to cover the amount on that day.The bank says the mistake occurred due to a change in their software, and due to the fact that their clearing operations were being shifted to Chennai.

The bank refuses to offer any compensation to me in this regard. The amount of the cheuqe was 780 Rupees.

Can I proceed to the consumer court in this regard? Also what is the compensation I might receive, since this was a payment for a utility bill and we were put though a lot of mental and physical tension due to the banks mistake.

The bank in question is Canara Bank.


 7 Replies

Arvind Singh Chauhan (advocate)     21 March 2014

If you have incurred any damages due to this conduct of Bank. You can file complaint in consumer forum otherwise it is futile effort.

Rohan (None)     21 March 2014

The damages are the penalty for dishonour of cheque Rs. 150 and Interest for delayed payment Rs. 250. Other than this comes the mental and physical tension which we were put through during all this. I was hoping to get 10000 in compensation. Will proceeding to the consumer court be a good idea?

Kumar Doab (FIN)     22 March 2014

You may narrate all representations made so far (mention names, date, time, brief minutes of discussion……………..) in writing under proper acknowledgment to BM with a copy to Regional Manager, Nodal Officer, Chairman of the bank even if by email and demand to beg apology in writing and compensation as per internal compensation policy of the bank (that should be available on the website of the bank).


If all bank officials maintain studied silence or do not satisfy you, then you have the option to approach BO or DCDRF.

Rohan (None)     28 March 2014

The Circle Office finally replied to my letter sent a month ago. They claim it was a technical glitch.

From the letter "On taking up the matter with our Chennai office, we have been informed that thought the cheque was debited once, the system again attempted to debit the cheque for the second time. As there was no balance at the time of the second debit, it was included in the returns. The recredit to the account took place at the time of balancing the books during day end"

To make matters clear, my bank requires me to maintain a minimum balance of 1000. Since I don't use the account in question all that much, I had 1100 at the time the cheque for 780 was issued. Previously, cheques used to pass even though I had to pay a fine for not maintaining the minimum balance.

Also, this cheque was in payment for my electricity bill. Owing to what happened, I was put through a lot of inconvenience which involved hunting down the cheque, finding the reason for it's rejection, and paying all the fines imposed by the Electricity department.

Now my Bank is offering me an apology and a letter that I should hand over to the Electricity Department. That's all.

Should I proceed to the DCDRF and claim compensation?

c.p.s. ramachary (1500)     28 March 2014

Make a demand for the damages actually suffered by you. In case of non compliance of your demand,you may move  Banking Ombudsman (in RBI located in your State Capital). .  Do not make imaginary claims like  Rs.10,000/- or 1,00,000/-. Reasonableness is counted for such complaint.

Rohan (None)     28 March 2014

The Ombudsman to whome I had filed a complaint with, arranged a meeting between me and the Branch Manager, during which all I was offered were verbal apologies by the dozen and small talk which I did not accept and made very clear that I should be compensated for all the inconvenience put through and fines I paid.They did not agree.


Today morning I received a email from the rbi saying my complaint is disposed.


Do i file the complaint again or approach the DCDRF?

Kumar Doab (FIN)     29 March 2014

You can certainly move DCDRF.

You can also approach: Dy. Governor: BO: RBI, that is the appellate authority..

You have the option to peruse the judicial process……………….


You may go thru:




>>> 17. What happens if the complaint is not settled by agreement?

If a complaint is not settled by an agreement within a period of one month, the Banking Ombudsman proceeds further to pass an award. Before passing an award, the Banking Ombudsman provides reasonable opportunity to the complainant and the bank, to present their case. 
It is up to the complainant to accept the award in full and final settlement of your complaint or to reject it.


>>> Department of Customer Service

  • Administering the Banking Ombudsman (BO) Scheme.

>>>  BO Law:



>>> Other Forums that are well versed can help and guide you e.g;



 “Ujvala”, 37, 20th Main, B.S.K.Stage I, Bangalore 560050

Web: : E-Mail:

Ph:26603490: M: 9343554943





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