Legal Question in Banking Law in India

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,

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.