Legal Question in Banking Law in India

When FDs of more that one lakh is withdrawn, amount is first transferred to saving account and then withdran from saving account. If this rule is not obeyed by bank workers, is it crime or can any action be taken against bank workers? This type of activity happens, when amount of FD is divided between two or more persons and anyone of them gives bribe to bank worker. In my case,FD is deposited by my father(ho is not alive) in name of my mother, saving account is of my mother and bribe is given by my brother.


Asked on 1/28/15, 5:52 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

28.01.2015

Dear Sir / Madam,

The mode of withdrawal proceeds of an FD at the time of maturity is based on the instructions given in the FD application by the holder(s) at the time of creating it in the Bank. The Bank will carry out the instructions given by the holder(s) in the application. In your case, if the Bank has not complied with the FD maturity proceeds instructions, you can sue the Bank.

Regards,

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Answered on 1/28/15, 8:02 am


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