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Ram (SE)     11 May 2010

Wrong Online fund transfer

I made wrong online fund transfer frommy account to unknown account instead of my cousines account. Next i made complaint to the corresponding branch, they calledup to the account holder but the number was not correct, call is going to another person. Manager sends mail and e-mail also to the account holder, upto we didnt get any response from that account holder at the same time the account is not getting operated since 10 months.

Bank guys are saying that we should not revert the transaction as per RBI rules, What should i have to do, to whom i have to contact ono this.

Please suggest me.



 15 Replies

adv. rajeev ( rajoo ) (practicing advocate)     11 May 2010

Make a correspondance with the RBI, there must be some provision to do so.

mahendrakumar (marketing)     11 May 2010

contact the other person using his address from the account book. even the bank could locate him with the help of his introducer in opening the account.
 


(Guest)

Hi,

The bank can only help you in tracing the customer and passing the request to the wrong recepient, but if the customer refuses to return the payment, then you may have initiate legal actions against him.

If the bank reverses the payment without his permission, then the customer would take action on the payment for misusing his account and which is illegal as per RBI.

You can have to approach your bank's ombudsman and RBI's with all the necessary documents and if all fail, then you will have to send him legal notice and pursue legal action.

Thanks,

Daksh (Student)     11 May 2010

Dear Ram,

The two most important thing in the circumstances is the manual of the bank and the Agreement of the Bank with its Customer which ipso facto enumerates the do's and don'ts.  If the money inadvetantly stands deposited nothing stops you to render a indemnity bond to this effect and then bank is duty bound to reverse the transaction.

Best Regards

Daksh

Vineet (Director)     15 May 2010

Dear Mr Ram,

In an NEFT or RTGS transfer request, if the details of receipient are not matching with the details provided by you viz, name of account holder, account number, bank and branch details (inc Bank Branch code), the transaction is bound to fail and money returns to your account.

 

Now in your case either you provided all the details in such a manner that they matched with the wrong recipient (which is highly impossible) or the bank has credited the wrong account even after noticing the discrepency.

 

In first case it would be very difficult for you to prove that the transaction was not intentional as the duty was casted upon you to provide correct details of rcepient and assumption is that you have indeed provided correct details. In such case the bank cannot help you at all and as learned lawyer friends suggest, only a legal action (I wonder under which provision of law) can help you.

 

If you are fortunate enough to fall under second case, then the mistake lies with Bank and you can persue the bank to revert the transaction as the same has been inadvertantly credited in wrong account. You have to get a copy of NEFT/ RTGS instruction in records of bank and take up the matter with higher level failing which to Ombudsman. It is akin to crediting a cheque issued in name of X in account of Y only because in the deposit slip account number of Y was mentioned. This is simply not permissible.

Ram (SE)     19 May 2010

Thanks for your reply. Can I go to RBI these details?  If yes, how to approach?  In my case we didnt trace the account holder address upto now, as he didnt update his details and not using the account since 10 months.

Ram (SE)     11 August 2010

Finally I got money, this is the process they followed.  First bank guys sent mail to the account holder by asking reply with some period. As that person not replied then bank taken indeminity form me then transferred amoun back to my account.

Originally posted by :Vineet
"
Dear Mr Ram,

In an NEFT or RTGS transfer request, if the details of receipient are not matching with the details provided by you viz, name of account holder, account number, bank and branch details (inc Bank Branch code), the transaction is bound to fail and money returns to your account.

 

Now in your case either you provided all the details in such a manner that they matched with the wrong recipient (which is highly impossible) or the bank has credited the wrong account even after noticing the discrepency.

 

In first case it would be very difficult for you to prove that the transaction was not intentional as the duty was casted upon you to provide correct details of rcepient and assumption is that you have indeed provided correct details. In such case the bank cannot help you at all and as learned lawyer friends suggest, only a legal action (I wonder under which provision of law) can help you.

 

If you are fortunate enough to fall under second case, then the mistake lies with Bank and you can persue the bank to revert the transaction as the same has been inadvertantly credited in wrong account. You have to get a copy of NEFT/ RTGS instruction in records of bank and take up the matter with higher level failing which to Ombudsman. It is akin to crediting a cheque issued in name of X in account of Y only because in the deposit slip account number of Y was mentioned. This is simply not permissible.
"

CS Pooja (Company Secretary)     13 August 2010

All is well that ends well.

Happy to know that you got your money back.

Bharati (Associate)     11 February 2014

Hi

I made an online transfer to a wrong account from ICICI BANK to Citibank. Its was a sum of 34,000 Rs. Since it was a NEFT transaction ICICI says that are not liable.

I tried to contact the beneficiary of the account. Firstly he said if money gets credited it will be transferred. But three days after they said, we do not have any account with Citibank. I told this to the CitiBank in person. Now the client is not responding to any email or calls.

Its a huge sum of mony for me. My mother is waiting for the money. Please help me to what extend i can do anything. Whom should i now inform this to?

please suggest.

venkatc (Other)     28 November 2014

Hello Ram,

 

Can i get more details about the Indemnity Bond? I am in the same situation as yours. Please provide me the format so that I can approach my bank with this solution.

 

Thanks,

Ram (SE)     29 November 2014

Bank has provided that format to me. In my case both accounts are ICICI and wrong account was not active. If the account is active you can directly contact to them ban guys will provide details. 

venkatc (Other)     29 November 2014

Thanks Ram, but do you have the format from the bank. ICICI dint give me any format and asked to prepare one. The other persons account is also ICICI and that person is not contactable by phone or does not live at tht address anymore. That account is in dormant state for more than 2 years,

venkatc (Other)     29 November 2014

Also, I have a question. Does it have to be on a Bond paper? Indemnity bond can be signed out side India?

ashok kumar (b)     28 June 2015

had made a direct on line transfer by way of a RTGC/NEFT but due to oversight had mentioned a wrong account number whereas the reciepent name, IFSC code etc was correct and the money finally went to a wrong account on 24th december 2014.Thereafter since last 5-6 months we have been chasing our bankers RATNAKAR BANK LIMITED KOLKATA and the reciepents bankers AXIS BANK LIMITED at ABOHAR in PUNJAB but to no avail.Had written to RBI the banking OMBUDSMAN in kolkata which has also been rejected by them.The reciepent has not been paying up since last 6 months.How should i proceed against the wrong reciepent.Amount is around Rs;111000/- and my business has been suffering badly due to the lost funds.PLEASE HELP. 


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