[Resolved]  Standard Chartered Bank — Dishonour of Cheque

Dear Sir,



Sub: Dishonor of Cheque – Standard Chartered Bank Ltd

Ref: Savings Account Number –[protected]



I, Shantilal Jain, am having Savings account with Standard Chartered Bank, Bangalore {INDIA} since September 2005. On 27th March 2008, I had issued 3 cheques in favor of Insurance Corporation of INDIA {LIC} towards the insurance premium payable in respect of Policies under my name. The details of the cheque are as follows,



Cheque No. 906647 - Rs.35, 178/-

Cheque No. 906648 - Rs.25, 783/-

Cheque No. 906649 - Rs.471/-



I had sufficient balance in my account to ensure that the above said cheques are cleared. However, irrespective of that, Standard Chartered Bank had dishonored the cheques, without any intimation.

The bank had dishonored first two cheques (Chq no.906647 & 906648) and had cleared the last cheque for Rs.471/- (Chq no.906649).



When I got in touch with Life Insurance Corporation of INDIA {LIC} for some of my other policies, the LIC people had informed me about the dishonor of the cheque and requested me to pay the premium as soon as possible in Cash or DD.



I had to repay the premium in cash on 10th April and 15th April 2008. The reason for dishonor that LIC had received from the banking authorities was “sign not available as per our SC”. Due to this, I had to undergo lots of stress in arranging the cash and also my reputation with LIC for so many years had been washed away. The managers and employees at LIC were so much angry and pissed off on me due to this and have clearly stated that they shall not entertain any cheque from me towards the premium going forward, also the fact that it was March month, the LIC staff were already busy with overload of people paying their premium.



After completing the formalities of premium with LIC of INDIA, I got in touch with my advocate for serving a notice to the banking authorities for asking the appropriate reason for such an instance and also to claim compensation. We had served a notice to the bank on 22nd April 2008. The bank did not bother to reply for my notice over a month and on May 29th 2008, M/s.R&P Partners (advocates & notaries) had replied on behalf of Standard Chartered Bank. However, we have also sent a reply to their notice on 5th June 2008 and have not received any reply as yet.



I am attaching the following documents with this letter for your reference,



1. Letter intimating Dishonor of Cheque

2. Copy of bank statement as of 31st March 2008

3. Copies of the dishonored cheque

4. First Notice sent to the Bank on April 22nd 2008

5. Reply received from the Bank on May 29th, 2008

6. The reply sent by our advocate on June 05th, 2008



In the reply from M/s.R&P Partners, sent on behalf of Standard Chartered Bank Ltd, the bank have stated in notice that they do not verify cheques of smaller denominations and hence out of 3 cheques, 2 got dishonored and one for Rs.471 got cleared. I was shocked to know, who are they to decide what is smaller and what is greater. It is my money with the bank, and the bank acting has custodian of my money is suppose to verify the smallest of the amount for that matter even a cheque of rs.1/- has to be verified and the bank authorities have no authority to deny their duties and responsibilities for their clients money.



Also, the bank have stated in the notice that if I had informed them earlier that the cheques have been issued to LIC, they would have honored the same. I believe it is not my duty to inform to whom and when do I need to issue a cheque. As long as, I have sufficient balance in bank account, I can issue cheques without need to be informing the bank or in that case getting their permission to issue cheque.



Also, the banks have asked the reason why I had issued cheques on 28th March and not before that. It is solely my decision to decide when I need to issue a cheque.



I am just astonished the way the banking authorities have replied to my notice and trying to prove that they were not negligent in executing their duties. I strongly believe that the banking authorities are unnecessarily prolonging the replies and are not paying any attention to the notice issued seriously.



I have also decided to go the media and get this message spread to general public so that they don’t get caught by such private banking rules and their negligence in duty.



I request your good self to have a look on the case and take an appropriate judgment on innocent consumers who are put to such a pain and agony for their own money.



Awaiting for a prompt and positive response from your good self.



Thanking You,

Yours Sincerely,

Shantilal Jain