What will happen in the case of "Initial funding cheque bounce" while Indusind account opening?

[Das.N]

I wanted to open a Indusind Select account for my sister as I have Select+Legend Combo already.

But while opening the account in the branch offline, they were unable to open that account by digital process because My sister's aadhar card was linked to my phone number and when they proceed, it was showing my existing account and they were unable to proceed further .

So, they suggested to open the account physically by filling the offline form. But the problem was , they wanted a cheque from my sister's account only and said they don't support IMPS/NEFT/UPI/CASH for offline account opening, A cheque is mandatory. We gave them a cheque from my sister's Canara Bank account.

But another problem happened here, My sisters Canara Bank account was opened also when she was a minor and her handwriting changed a lot now. So we went to Canara Bank to update the signature ( same to that which was given to Indusind Bank).

Today, we have got the account opening mail, sms from Indusind.
But, Canara Bank still dishonored the cheque due to signature mismatch.
I instantly called my Indusind BM and described what happened and requested him if we could fund the account digitally as account number, IFSC is already generated. He said he don't fund the account now, The account may be freezed as IP cheque is bounce and he will inform me about it later.

Now, what should we do?
Will the account remain active or automatically be closed by Indusind?
I am bit worried to fund the account now, as the money can stuck there if account is frozen.

 

[RAMESH BABU N]

As per the BRA Act (Banking Regulation Act) and the NI Act (Negotiable Instruments Act), a banker can not collect the proceeds of an instrument unless he is a customer. And, a customer of one bank can become a customer of another bank only by giving a self drawn cheque - which acts as a proper fulfilment of the requirement of proper introduction.

Hence, these procedures are a must and are unavoidable.

 

[RAMESH BABU N]

There are about 32 different Acts which a Banker (a banking institution) should know n follow. Right from the major ones like the BRA, the NIA.... to the smaller ones like Stamp Act.

99% of the customers do not know about this. Similarly, 99% of the so-called bankers from Private Banks also do not know about this.

In a majority of Private Banks, banking means only selling (mis-selling) products and somehow managing to enter data into their systems so that work can be done. Most of them are NOT qualified bankers - certified bankers - having passed the mandatory JAIIB n CAIIB exams - specially designed for only banking staff n officers.

Sad, but true.

 

[kiwi195]

I'm also curious about this 😆 When I opened my Kotak account via branch, the account was activated and 100% useable (debit card, net banking and UPI) in 2-3 hours but the initial funding cheque was processed the next day. Had this cheque bounced, what could have happened?

 

[RAMESH BABU N]

I'm also curious about this 😆 When I opened my Kotak account via branch, the account was activated and 100% useable (debit card, net banking and UPI) in 2-3 hours but the initial funding cheque was processed the next day. Had this cheque bounced, what could have happened?

Usually, such balances are shown (or marked internally as under lien) as uncleared balances - meaning you can not withdraw or use these funds till they are converted to clear balances. After that cheque/draft/banker's cheque/etc... is cleared thru clearing process, such conversation will take place.

If that instrument is not cleared or stopped at the paying bank level, the recieving bank will do what it deems fit. Either inform the customer or proceed otherwise - legally - to recover - as it depends on a lot of variable scenarios.

 

[kiwi195]

Usually, such balances are shown (or marked internally as under lien) as uncleared balances - meaning you can not withdraw or use these funds till they are converted to clear balances. After that cheque/draft/banker's cheque/etc... is cleared thru clearing process, such conversation will take place.

If that instrument is not cleared or stopped at the paying bank level, the recieving bank will do what it deems fit. Either inform the customer or proceed otherwise - legally - to recover - as it depends on a lot of variable scenarios.

Interesting, was always curious about this specific case. Thank you for your insight!

 

[harshn]

@RAMESH BABU N

As per the BRA Act (Banking Regulation Act) and the NI Act (Negotiable Instruments Act), a banker can not collect the proceeds of an instrument unless he is a customer. And, a customer of one bank can become a customer of another bank only by giving a self drawn cheque - which acts as a proper fulfilment of the requirement of proper introduction.

Hence, these procedures are a must and are unavoidable.

Sir NEFT/IMPS done online through own account of other bank does not proove that customer is genuine?
Actually I don't have chequebook, all HDFC branches of my city denied opening account without IP cheque but one branch staff(backup/assistant branch manager) agreed for own account IMPS/NEFT funding but reluctantly, so should I open account beliving him or later on I may face problems or account getting freezed or closed etc ??

 

[KGSIPO]

@RAMESH BABU N

Sir NEFT/IMPS done online through own account of other bank does not proove that customer is genuine?
Actually I don't have chequebook, all HDFC branches of my city denied opening account without IP cheque but one branch staff(backup/assistant branch manager) agreed for own account IMPS/NEFT funding but reluctantly, so should I open account beliving him or later on I may face problems or account getting freezed or closed etc ??

No issues. I opened 3 HDFC accounts for family by paying in cash in their cash counter for initial funding

 

[harshn]

No issues. I opened 3 HDFC accounts for family by paying in cash in their cash counter for initial funding

U might have opened before July 2024

 

[KGSIPO]

U might have opened before July 2024may

U might have opened before July 2024

May be a year back. Does this mean that nobody can open a bank account without haveing another account.Looks weird

 

[harshn]

May be a year back. Does this mean that nobody can open a bank account without haveing another account.Looks weird

Today only visited 8 branches in my city , they r not opening.
They r fools and full of attitude.

 

[Neo]

@RAMESH BABU N

Sir NEFT/IMPS done online through own account of other bank does not proove that customer is genuine?
Actually I don't have chequebook, all HDFC branches of my city denied opening account without IP cheque but one branch staff(backup/assistant branch manager) agreed for own account IMPS/NEFT funding but reluctantly, so should I open account beliving him or later on I may face problems or account getting freezed or closed etc ??

I have the similar experience with IndusInd Bank. My initial funding check got bounced. I have offered them a cheque from my other account (Name is exactly same as Indusind account) or Funds transfer from my other bank account to the IndusInd.

However IndusInd BM mentioned that both the options are not possible 🙁

Once the initial funding check got bounced, they will resubmit the same exact cheque for second and last attempt (Their system doesn't accept to change cheque at this stage) . And if the cheque gets rejected at the second attempt, then it's the end of the story. You can not do anything beyond this step. You need to close the account if it is already got created and go for a new account opening process. This is how their system works.

 

[harshn]

I have the similar experience with IndusInd Bank. My initial funding check got bounced. I have offered them a cheque from my other account (Name is exactly same as Indusind account) or Funds transfer from my other bank account to the IndusInd.

However IndusInd BM mentioned that both the options are not possible 🙁

Once the initial funding check got bounced, they will resubmit the same exact cheque for second and last attempt (Their system doesn't accept to change cheque at this stage) . And if the cheque gets rejected at the second attempt, then it's the end of the story. You can not do anything beyond this step. You need to close the account if it is already got created and go for a new account opening process. This is how their system works.

Hdfc aur IndusInd , baba aadam k zamane k Bank Hain 😂😭
ICICI is best