at what point of time interest starts to accrue??

This query is : Open

Rubul (Querist)
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08 December 2014 Dear Members
All though this is not a pure area of CA But can you Please help me on the following issue :-
I have applied for a loan on 1.08.2014 from my SBI CREDIT CARD for Rs.10000 (via internet by clicking on an option called "easy money"). Afterwards they sent a cheque on 3.08.2014 but in the Payee name they had written my name as RUBUL DAS-STATE BANK OF INDIA. Than on the same day I had presented my cheque to my banker(Corporation Bank) for clearing. But my Banker said that this cheque can't be cleared as the Payee name is different (since my name is Rubul Das and not RUBUL DAS- STATE BANK OF INDIA). Hence I asked SBI Credit Card division to issue me an another cheque citing reason as mis-match of name and they never did so, hence I have arranged loan from my pvt. sources and thus as my need for loan is over. I asked SBI Credit Card division to cancel the cheque as on 14.08.2014. In the month of October. I was shocked to see my credit card statement which which shows a debit balance of Rs.10000 and interest of Rs.1936 thereon. I have complaint this issue to their customer care executive and she told me that the issue will be resolve in 5 days, again which never happened. Than I receive my credit card statement for the month of Nov and December which again contains interest charges of Rs. 1936 and other penal charges for non-payment of dues. Again I complaint this and nothing happened in this matter and shockingly one of their executive showed at my doorstep and asked for payment.
Now members I want to ask you is it valid to charge interest without actual credit of amount and charging interest merely on the basis of issuance of cheque(which is never cleared). Even if it is valid(which is hardly justifiable) still the question remains same that due to bank's mistake in name why should the borrower feel the heat of interest when he have not utilize the amount...forgot utilize.... the loan amount never gets credited in borrower's a/c and it is all due to failure on the part of Bank.
Further I want to know which Act is applicable on this issue. I mean to say that is their any act or clause which describe the point of time when interest is charged on outstanding loan or amount??? And if possible please quote related case laws.
Further I want to raise this matter with banking ombudsman. So please tell me that- Are these type of issues are within the jurisdiction of banking ombudsman??? If not where should I contest this issue apart from consumer forum???

CA PARTH SHAH

CA PARTH SHAH (Expert)
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20 December 2015 First of all I would suggest you to stay away from SBI cards as they are the worst service providers I ever saw.

Coming to your question, SBI just cannot charge you Interest as you have not yet realised the loan amount.

You have to file complain to banking ombudsman regarding this but first pay your bills before filing the complain.