Legal Question in Banking Law in India

Dear Sir,

I have mistakenly submitted incorrect bank a/c no. for payroll processing in my org. Subsequently, a month's salary was credited to the wrong account person. Bank says that they do not verify the name and a/c no. before processing. And, they say, they can only issue a notice to the a/c holder on this; it is up to the a/c holder to respond and give back my money. My org doesn't help me much because it is not their fault. How can I recover my salary from the other person?


Asked on 3/12/15, 8:58 am

2 Answers from Attorneys

Fca Prashant Chavan Expert Edge LLP

13.03.2015

Dear Sir / Madam,

Although the Bank is not required to verify the Payee A/c holder's details whilst effecting the transfer, the Bank is bound to issue the notice to the A/c holder to whom the funds have been erroneously transferred, to remit the money back to the Bank within 3 working days. A copy of that letter has to be given by the Bank to you for information and action. At the same time, you should also write to the person to whom the funds have been wrongly transferred to return back the money to the remitting Bank (your Bank) through his / her Bank A/c within 7 working days. If the person to whom the money has been erroneously transferred fails to return it back to your Bank within 10 days, lodging an FIR in the nearest Police station is advisable and recommended.

Regards,

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Answered on 3/12/15, 7:40 pm
J. Radhakrishnan independent Practice

It is neither your organization's or bank's mistake the amount has gone to the wrong account. It is your mistake in having given the wrong account details . U have to issue a notice demanding from the person to whose account the amount is credited by your mistake to return the amount to you within a week with copies of such notice to your org. As well as to the bank. If the wrong beneficiary fails to return the amount you have no alternative to file a suit against him for recovery with interest.

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Answered on 3/15/15, 7:05 am


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