Legal Question in Banking Law in India

Re: Wrong Credit in Account

You say that you have credited the amount to a wrong account because the customer presumably has mentioned the wrong account No. in the pay in slip accompanying the cheque. If the customer has not given the wrong account No. in writing, and the mistake is on your part, then, you can recover from the wrong account holder. If because of the customer mentioning the wrong account No. in the pay in slip or other communciation signed by him, provided the name of the wrong account holder is the same as mentioned on the pay in slip, it is for the customer to recover the amount from the person to whose account the amount is wrongly credited as it is his mistake. But if you as banker finds the name to which account the customer wants the credit to be made is different from that of the wrong account holder, notwithstanding the mistake in the account number, you are answerable to the customer for negligence. However you have the defence of contributory negligence, if the customer has mentioned the wrong account Number. If it is your mistake in crediting the amount to the wrong account, you can recover from the wrong account holder, in case he later deposits amount sufficient for set off and if not sue the customer on the ground of mistake, after making good the amount to the customer.

Re: Wrong Credit in Account

Try to get the money back or else you may be held liable.

Re: Wrong Credit in Account

I completely agree with the opinion of said attorneys mr. radhakrishnan and goel.

Re: Wrong Credit in Account

Unfortunately, you may be held liable for repayment of the money. Further, the customer can sue the banke for negligence. Therefore, I suggest your bank should send a legal notice to the customer for repayment of the money.

Re: Wrong Credit in Account

The customer may hold the bank liable and you may in turn be accountable for negligence. Even if the customer mentions a wrong number, you need to verify the name of account holder also before you credit the cheque proceeds. And if the account number does not tally with the name, you may withhold the funds in a 'suspense' / 'sundry' account. You may better inform your higher authorities of your mistake and be prepared to suffer the damage.