Legal Question in Banking Law in India

Sir am working in State bank. i credited a sum of amount 150000 in wrong customer account. He had withdrawn the amont. Now he is ready to repay the amount But not at once, only on monthly wise. He is receiving pension of rs 25000 with our bank itself. My bank manager is asking the customer to apply a loan for the same amount and repay it on EMI basis. The customer is not ready to do that. please give me some sollution.


Asked on 9/18/10, 8:24 am

2 Answers from Attorneys
Vishwa Arya Arya & Co.

your first requirement is to take an acknowledgment from the customer and standing instruction to the bank for debiting the account with 20000/25000 per month. First get that acknowledgment from the customer and then see if the customer agrees for the instructions of the manager

Read more
Answered on 9/18/10, 9:20 am
J. Radhakrishnan independent Practice

Get a letter from the customer acknowledging the wrong credit and his willingness to repay the same including by debit to his accounts with the bank. Thereupon, your bank can exercise its right of set off against any credit balance in any of his accounts in which he is the sole beneficiary. The Bank can also sue him for recovery of the amount credited by mistake to his account, after issue of demand notice by regd. Post. ack. due.

Read more
Answered on 9/18/10, 8:25 pm


Related Questions & Answers

More Banking Law questions and answers in India