rather than blaming the Bank for keeping the Blank cheque, shouldn't we
introspect as to why we have given the blank chq in the first place, despite
ourselves being the so called educated / learned persons.

I have taken a loan under pmry scheme in year 2006 rupees 60000 I paid partly emi due to financial constraints I could not pay for 15 month, I approached asst./ branch manager who fixed rupees 2800 emi from june 2009 however he cheated by internal transfer from my saving account to loan accoumt 3 times (the out standing loanamount was 41000,without informing me he placed my blanck signed cheque for the whole amount of rupees 41000, I was keeping enough amount for clearing of rupees 2800 of emi.by placing 41000 rupees blank cheque he got it bounced malaciously. Bank sent me 138 nic notice however after sending legal notice manager still transferred rupees 14000 from my sb account. Bank still holds 18 blank signed cheques and are not returning them. Should I file FIR against manager, I have sent the legal amount as depicted in legal notice within time by registered post.
Kindly suggest the legal authencity of keeping signed blank cheques(20 leaves)for a meager amount of 60000 loan.
Kindly informe whether manager can transfer the amount from my sb to loan account after sending me the legal notice I have also instructed banker not to meddle with me sb/ loan accounts.
BY after recieving DD of rupees 41000 the loan account shall have extra amount.after my instructions of not to meddle with my account can he still transfer extra amount from loan to saving. In case he sends it by cheque/ DD should I refuse it because he affected the transfer after sending me the legal notice.
Waiting for your advice
Thanks and regards
virendra

Hi Virendra,

I would like to tell you that when you take any loan from any bank it is a proceedure that the bank takes as many blank Cheques as your installments are or some considerable no of cheques nowadays.
These cheques they take are meant for withdrawing the whole outstanding money from your savings account in case you fail to pay any of the installments for more than 2-3 months.
This is all they must have told you as soon as they took the cheque from you.
And in case they have not conveyed anything like that then while giving blank cheques you must have asked them because giving a blank cheque to anyone is very much risky.

You yourself said that you have not paid the installments for 15 months.
Just imagine a condition where you have given your friend Rs. 6000/- and he promised to return it after 15 days. In case he took the 20th day inreturning you back your money don't you feel helpless.
In that case if you can access his savings account then you would also do the same and would not trust that person again.

You are saying that this bank manager has cheated you.
But anyhow he has only done his job.
If you think that Rs. 60000/- is meager amount then why did you took a loan from a bank. You must have taken it from any of your friends or relatives without any interest rate or blank cheques.
And then you could have paid them back in your choice of time.
But if you have taken a loan from any Bank then you must also follow their rules and regulations.

India is a democratic country and we have right to speak.
This does not mean we can do anything against anyone even if the fault is ours.
You can file a case very well but when this case will be opened they will show your signed documents to the court.
And in those terms and conditions they have mentioned about the blank cheques and also that if you fail to pay the EMI for certain period then they will issue a full outstanding amount cheque from your savings account.

So I would suggest that if the loan is already settled and they have extra amount from your side then ask them to return your extra payment.
If they refuse to do so then you can file a case against the bank.

Thanks & Regards
Sweta Shrivastava

Originally Posted by SwetaS

Hi Virendra,

I would like to tell you that when you take any loan from any bank it is a proceedure that the bank takes as many blank Cheques as your installments are or some considerable no of cheques nowadays.
These cheques they take are meant for withdrawing the whole outstanding money from your savings account in case you fail to pay any of the installments for more than 2-3 months.
This is all they must have told you as soon as they took the cheque from you.
And in case they have not conveyed anything like that then while giving blank cheques you must have asked them because giving a blank cheque to anyone is very much risky.
Thanks & Regards
Sweta Shrivastava

Yes Sweta you are very much right, issuing blank cheque is very risky, and the customers have to go through the terms and conditions before signing any document, but usually they don't do .