Can I raise a complaint to RBI for money rotation by the branch ?

[Adith]

Hey TFians , need your help in this situation to see if it's possible to escalate to RBI for this for compensation.

Both my parents are Central Govt employees. So any financial asset purchase usually goes through a hoop of NOC and other stuff so it doesn't affect their career or anything else.

They decided to purchase a house and to cover 35L via housing loan for it while the rest was by either via PF loan , savings , family member borrowings etc.

Irrespective of my suggestion ( to go with sbi or HDFC) , they decided to go ahead with their friend & family suggestion of taking the loan from UCO bank . They had a known friend there so that solidified the decision for them.

Note : Loan was taken for my mom with dad as co-applicant.

It was hell right from the start of application

1. where they asked my father for co-applicant cheque although it's a low risk loan with NOC for both of them provided from their respective offices along with financial history and both their cibil history. He raised a complaint and got the cheques back.
2. They would not budge and wanted to check my mother's office which is sort of a secured office so she had to get extra precautions and stuff. This shouldn't have happened since all the history was provided.
3. Their legal rep never gave approval for the docs submitted and stuff, so my father had to get it approved by a high court lawyer for the same so the loan application moves forward.

After all this shitty stuff , the loan was finally sanctioned on July 2022 .

1. Loan amount was disbursed to account and DD was provided only in September 2022 though .
2. Since the delay was unexpected, they couldn't get a proper registration slot so the bank cancelled the DD
3. They got a proper slot in October and the bank provided a new DD
4. Registration happened, seller got amount and everything was settled.
5. We had deposited a 1.2L cheque for fund transfer in May of 2022 itself in the UCO acc to be sent to the owner.
6. All these transactions are tracked and completely white.
7. Parents paid stamp duty on the transaction and the same was filed in ITR by the CA

Fast forward to 18th March 2025, my mother recieved an IT notice , asking why 36.2L ( 2 transactions from her Loan account to her savings account of 35L and 1.2L ) on May 2023 was not shown in ITR filing and to pay the tax for the same on or before March 31 else strict action will be taken .

We were all shocked . The first thing we did was to download complete statement from UCO bank and it had 0 transactions in May 2023. None of us did any transaction and nothing was also sent from the bank. Yet the notice from IT had an attachment which clearly showed both the loan and savings account in UCO bank that my mother has, with 2 clear transactions shown.

After the statement was downloaded, an email was sent to the branch manager mentioning the IT notice and for an answer. Since the date was getting close by, our CA, with the complete statement history and also the loan sale information responded to IT and informed us that the notice has been dealt with.

On 31st March, the manager responded saying there are no transactions on the said date.

Complaint was escalated to CMD , UCO bank via physical letter from my father asking for an answer .

1. This complaint was forwarded by the CMD to the DGM (also Zonal Head ) . The answer they gave was frankly , insane.
2. For the 35L transaction in question , They clearly mentioned , with sign and seal , that when DD was cancelled in September, " the branch inadvertently reversed the amount as cash instead of transfer " . This was in sep 22 btw. They have no answer for why the transaction is showing up in May 2023.
3. For the 1.2L transaction, they are quoting the deposit we did in May 2022.

We had doubts that money was rotated but this literally seems like it's proved.

Can this be directly taken to RBI ombudsman? What do you guys suggest. Everything was fine by the books and we are still getting agonized.

Asking for help from the veterans.

 

[RaviAglRaviAgl is verified member.]

Hey TFians , need your help in this situation to see if it's possible to escalate to RBI for this for compensation.

Both my parents are Central Govt employees. So any financial asset purchase usually goes through a hoop of NOC and other stuff so it doesn't affect their career or anything else.

They decided to purchase a house and to cover 35L via housing loan for it while the rest was by either via PF loan , savings , family member borrowings etc.

Irrespective of my suggestion ( to go with sbi or HDFC) , they decided to go ahead with their friend & family suggestion of taking the loan from UCO bank . They had a known friend there so that solidified the decision for them.

Note : Loan was taken for my mom with dad as co-applicant.

It was hell right from the start of application

1. where they asked my father for co-applicant cheque although it's a low risk loan with NOC for both of them provided from their respective offices along with financial history and both their cibil history. He raised a complaint and got the cheques back.
2. They would not budge and wanted to check my mother's office which is sort of a secured office so she had to get extra precautions and stuff. This shouldn't have happened since all the history was provided.
3. Their legal rep never gave approval for the docs submitted and stuff, so my father had to get it approved by a high court lawyer for the same so the loan application moves forward.

After all this shitty stuff , the loan was finally sanctioned on July 2022 .

1. Loan amount was disbursed to account and DD was provided only in September 2022 though .
2. Since the delay was unexpected, they couldn't get a proper registration slot so the bank cancelled the DD
3. They got a proper slot in October and the bank provided a new DD
4. Registration happened, seller got amount and everything was settled.
5. We had deposited a 1.2L cheque for fund transfer in May of 2022 itself in the UCO acc to be sent to the owner.
6. All these transactions are tracked and completely white.
7. Parents paid stamp duty on the transaction and the same was filed in ITR by the CA

Fast forward to 18th March 2025, my mother recieved an IT notice , asking why 36.2L ( 2 transactions from her Loan account to her savings account of 35L and 1.2L ) on May 2023 was not shown in ITR filing and to pay the tax for the same on or before March 31 else strict action will be taken .

We were all shocked . The first thing we did was to download complete statement from UCO bank and it had 0 transactions in May 2023. None of us did any transaction and nothing was also sent from the bank. Yet the notice from IT had an attachment which clearly showed both the loan and savings account in UCO bank that my mother has, with 2 clear transactions shown.

After the statement was downloaded, an email was sent to the branch manager mentioning the IT notice and for an answer. Since the date was getting close by, our CA, with the complete statement history and also the loan sale information responded to IT and informed us that the notice has been dealt with.

On 31st March, the manager responded saying there are no transactions on the said date.

Complaint was escalated to CMD , UCO bank via physical letter from my father asking for an answer .

1. This complaint was forwarded by the CMD to the DGM (also Zonal Head ) . The answer they gave was frankly , insane.
2. For the 35L transaction in question , They clearly mentioned , with sign and seal , that when DD was cancelled in September, " the branch inadvertently reversed the amount as cash instead of transfer " . This was in sep 22 btw. They have no answer for why the transaction is showing up in May 2023.
3. For the 1.2L transaction, they are quoting the deposit we did in May 2022.

We had doubts that money was rotated but this literally seems like it's proved.

Can this be directly taken to RBI ombudsman? What do you guys suggest. Everything was fine by the books and we are still getting agonized.

Asking for help from the veterans.

I would suggest to arrange a meeting with the ITO describing your case. Make sure you don't sign any blank paper and if the ITO asks to meet at some time, ask him to summon you from his office to meet him. If you are asked to sign some paper make sure that you sign just below the text so that nothing can be added afterwards. Also take a picture of what you are signing.

This will put everything on record for you.

With this done, make sure to get your case clean even if it not your fault, so that you will not be harassed by the income tax department in future.

Regarding ombudsman, I would say, throw the case away. They only have the power to reimburse you with what you have suffered which is nothing here. For mental harassment, they will direct you to consumer forum.

Thanks!!

 

[Adith]

I would suggest to arrange a meeting with the ITO describing your case. Make sure you don't sign any blank paper and if the ITO asks to meet at some time, ask him to summon you from his office to meet him. If you are asked to sign some paper make sure that you sign just below the text so that nothing can be added afterwards. Also take a picture of what you are signing.

This will put everything on record for you.

With this done, make sure to get your case clean even if it not your fault, so that you will not be harassed by the income tax department in future.

Regarding ombudsman, I would say, throw the case away. They only have the power to reimburse you with what you have suffered which is nothing here. For mental harassment, they will direct you to consumer forum.

Thanks!!

Thank you for the reply. I had a similar thought that consumer court would be better than RBI but wanted to confirm anyhow.

 

[Adith]

I knew Technofino is famous and has insanely good reputation but i dint Think it was this high.

My Father just recieved a phone call from the branch manager asking him why an online complaint has been raised in this issue since an offline complaint is already in-progress.

The post has barely 100 views and almost no engagement and yet the bank staff have already seen it. WOW.

 

[D₹V]

I knew Technofino is famous and has insanely good reputation but i dint Think it was this high.

My Father just recieved a phone call from the branch manager asking him why an online complaint has been raised in this issue since an offline complaint is already in-progress.

The post has barely 100 views and almost no engagement and yet the bank staff have already seen it. WOW.

Don't delete this thread.

And take it to RBI. It's definitely bank's fault that they did reverse DD as cash, also reported wrong details (date i.e. may) with IT department.

You'll surely get a good compensation & bank would get a slap.

 

[nipun_tulsyan]

Hi,

I am not really sure, But I guess that the May 2023 you are reporting is the TIME when Bank reports the AIS to the Income Tax Department for Major Financial activities of the consumers.

And I am not sure why do you pay tax for a house purchase, since there is no Income at this point of time!

 

[Adith]

Don't delete this thread.

And take it to RBI. It's definitely bank's fault that they did reverse DD as cash, also reported wrong details (date i.e. may) with IT department.

You'll surely get a good compensation & bank would get a slap.

Thanks bro. Can you suggest on whether to follow the usual NO, PNO and RBI flow or we can directly take this to ombudsman ? How do I frame this complaint ? False reporting to IT and wrong reversal of DD as cash ?

Hi,

I am not really sure, But I guess that the May 2023 you are reporting is the TIME when Bank reports the AIS to the Income Tax Department for Major Financial activities of the consumers.

And I am not sure why do you pay tax for a house purchase, since there is no Income at this point of time!

Isn't March the end of financial year ? Why would bank report it in May of 2023. Shouldn't it have been reported by March 31?

 

[hender]

Hey TFians , need your help in this situation to see if it's possible to escalate to RBI for this for compensation.

Both my parents are Central Govt employees. So any financial asset purchase usually goes through a hoop of NOC and other stuff so it doesn't affect their career or anything else.

They decided to purchase a house and to cover 35L via housing loan for it while the rest was by either via PF loan , savings , family member borrowings etc.

Irrespective of my suggestion ( to go with sbi or HDFC) , they decided to go ahead with their friend & family suggestion of taking the loan from UCO bank . They had a known friend there so that solidified the decision for them.

Note : Loan was taken for my mom with dad as co-applicant.

It was hell right from the start of application

1. where they asked my father for co-applicant cheque although it's a low risk loan with NOC for both of them provided from their respective offices along with financial history and both their cibil history. He raised a complaint and got the cheques back.
2. They would not budge and wanted to check my mother's office which is sort of a secured office so she had to get extra precautions and stuff. This shouldn't have happened since all the history was provided.
3. Their legal rep never gave approval for the docs submitted and stuff, so my father had to get it approved by a high court lawyer for the same so the loan application moves forward.

After all this shitty stuff , the loan was finally sanctioned on July 2022 .

1. Loan amount was disbursed to account and DD was provided only in September 2022 though .
2. Since the delay was unexpected, they couldn't get a proper registration slot so the bank cancelled the DD
3. They got a proper slot in October and the bank provided a new DD
4. Registration happened, seller got amount and everything was settled.
5. We had deposited a 1.2L cheque for fund transfer in May of 2022 itself in the UCO acc to be sent to the owner.
6. All these transactions are tracked and completely white.
7. Parents paid stamp duty on the transaction and the same was filed in ITR by the CA

Fast forward to 18th March 2025, my mother recieved an IT notice , asking why 36.2L ( 2 transactions from her Loan account to her savings account of 35L and 1.2L ) on May 2023 was not shown in ITR filing and to pay the tax for the same on or before March 31 else strict action will be taken .

We were all shocked . The first thing we did was to download complete statement from UCO bank and it had 0 transactions in May 2023. None of us did any transaction and nothing was also sent from the bank. Yet the notice from IT had an attachment which clearly showed both the loan and savings account in UCO bank that my mother has, with 2 clear transactions shown.

After the statement was downloaded, an email was sent to the branch manager mentioning the IT notice and for an answer. Since the date was getting close by, our CA, with the complete statement history and also the loan sale information responded to IT and informed us that the notice has been dealt with.

On 31st March, the manager responded saying there are no transactions on the said date.

Complaint was escalated to CMD , UCO bank via physical letter from my father asking for an answer .

1. This complaint was forwarded by the CMD to the DGM (also Zonal Head ) . The answer they gave was frankly , insane.
2. For the 35L transaction in question , They clearly mentioned , with sign and seal , that when DD was cancelled in September, " the branch inadvertently reversed the amount as cash instead of transfer " . This was in sep 22 btw. They have no answer for why the transaction is showing up in May 2023.
3. For the 1.2L transaction, they are quoting the deposit we did in May 2022.

We had doubts that money was rotated but this literally seems like it's proved.

Can this be directly taken to RBI ombudsman? What do you guys suggest. Everything was fine by the books and we are still getting agonized.

Asking for help from the veterans.

I understand the pain your family felt,
You got the suggestions and took the action already.

Now, Get relaxed, don't loose your mental peace.

On Banking side(Higher authorities) UCO, RBI , keep them in loop/mail /communication for the issue.
Along with ITD.

Big Transaction always have a trail.
A house purchase entry no one can easily use against you. You have all legitimate sources, and explanation.
All the best 👍.

 

[D₹V]

Thanks bro. Can you suggest on whether to follow the usual NO, PNO and RBI flow or we can directly take this to ombudsman ? How do I frame this complaint ? False reporting to IT and wrong reversal of DD as cash ?

Isn't March the end of financial year ? Why would bank report it in May of 2023. Shouldn't it have been reported by March 31?

If you have written complaint for 30d or above. Do raise complaint in RBI. Mention whatever happened to you, I mean both.