Can bank recover the money wrong credited to Bank Account?
If bank by mistake credits certain amount in account holders account, can bank debit it without permission of account holder?
Suppose Mr. X have a bank account in SBI. SBI by mistake credits his account by Rs. 10,00,000, can SBI debit his account by 10,00,000?
What will happen if Mr. X draws the money and use it for his personal purpose?
What will happened if Mr. X transfer that money to some other account within same bank or transfer to some other person holding account in same bank or other bank?
Did a research on it online and came to this thread.
The money can be debited by bank if if the beneficiary has not changed his or her position. Changing position means, not done anything with money which suffered him loss.
If the money is used for profit making, then bank can take the money back but not profit. If the account holder has used the money and suffered loss then bank can not take the money back.
However, if the money is still in bank account only, bank can debit the money without permission of account holder.
What if the money is credited due to wrong NEFT details by someone.
Suppose Mr. X wanted to tranfer money to Mr. Y through NEFT, say Rs. 50,000. But while putting the details, wrong account number was filled. Money went to Mr. Z.
What banks can do under this situation? Can bank recover the wrongly transfered money from Mr. Z?
NEFT and credits by bank is totally different. Wrong credit by bank is accounting mistake by bank and bank can debit account anytime.
In case of NEFT, the transaction is not done by the bank staff in regular course of their accounting. Money received through NEFT belongs to the account holder and bank can not play any role in recovering of money.
Through Bank you can only collect the information to whose account the money has gone. You can request the person to tranfer money.
Some legal expert can guide on this issue.