Preclosure of FD in Bank

subra (share business) (67 Points)

24 December 2011

Dear Sir,

State bank of India has wrongly opened a single loan account of Rs 2250000 ( 90% of principal) against my one single FD of 19 lakhs maturing in 6 months time and six one lakh FDs maturing in one month's time and charged 11.5% interest for the laoan account.The 19 lakhs FD was for 1000 days at 9% interest.Six one lakh FDs were for 1000 days at 10.5% interest. I brought this mistake to their notice ,the next day,They assured correction of the problem for higher interest rate and assured to open seven loan accounts.

After two months , I required some five to six lakhs. The computer did not allow the officer to open seven loan accounts as promised and adjusted the preclosure amount of 19 lakhs Fd to all loan accounts and created a loss of above Rs 200000 for the seven FDs preclosure.

I appealed to banking ombudsman.The SBi calculation and my calculation are given below.

Which is correct?

Deficiency of Services : ( written to B.Ombudsman)

1. A single loan account was wrongly opened for seven Fixed Deposits instead of seven loan accounts on 30.04.2011

2.Higher interest rate was charged.for the loan account by the officer on 30.04.2011.

Both the errors were brought to the notice of the bank. The bank assured us to correct both the errors. But the bank corrected the higher interest rate charged6633 ,but unable to open seven loan accounts before preclosure as promised because computer was not allowing the officer to rectify his second error.Hence, to cover up his mistake and deficient service,

3. The officer fraudulantly adjusted the preclosure amount of single 19 lakhs FD Rs 2166708 to the seven loan accounts as informed and agreed to you by the bank in your email dated 22.10.11which even a chit fund company will not do. The SBI, the largest public sector bank in India has done this fraud to save the officer and chief manager. The proof you have asked sir is explained below which is known to every common man, need not to be a banker to do this.

Please see how the calculation should have been done as it is being done universally by any bank or any financial institution.

Correct Calculation for19 Lakhs FD loan preclosure :

No	Particulars	Amount (Rs)
1.	Preclosure amount of19 Lakhs FD as on 07.07.2011 as stated by SBI in the above reference	22,91878.00
2	Loan Sanctioned by SBI against 19 lakhs FD (90%) at 10% interest rate	17,10,000.00
3	Loan amount repayable on 07.07.2011 for this 19 lakhs FD loan account	17,42060.00
4	The balance excess amount that should have been credited to SB account	5,49,798.00
5.	Balance as on 07.07.2011before preclosure in SB account	4,18,965.00
6.	Total amount in SB account on 07.07.11. would have been	9,68,763.00

The above correct calculation would have made us in a fund surplus position on that day and there would not have been a need for preclose of our six FDs of one lakh each for 1000 days which was maturing in one month’s time. The officer has thus caused a loss of91000 by forcing us to prematurely close our six one lakh FDs.

The fraudulent calculation done by theofficer,SBI:

Date (Value Date)	Narration	Ref/Cheque No.	Debit	Credit	Balance
07-Jul-11 (07-Jul-2011)	DISCHARGE VIA TRA TRANSFER FROM	/-		1,25,210.00	0.00
07-Jul-11 (07-Jul-2011)	DISCHARGE INTERES	/-	4,337.00		-1,25,210.00
07-Jul-11 (07-Jul-2011)	NPB REPAYMENT FRO 30689578122 TO 31729078561	/-		21,66,708.00	-1,20,873.00
07-Jul-11 (07-Jul-2011)	INTEREST REPAYMEN	/-		6,633.00	-22,87,581.00
30-Jun-11 (30-Jun-2011)	INTEREST	/-	21,482.00		-22,94,214.00
31-May-11 (31-May-2011)	INTEREST	/-	21,983.00		-22,72,732.00
24-May-11 (24-May-2011)	DEBIT ADJUSTMENT STAMP FOR SL	/-	20.00		-22,50,749.00
30-Apr-11 (30-Apr-2011)	PART PERIOD INTER	/-	709.00		-22,50,729.00
30-Apr-11 (30-Apr-2011)	DEBIT ADJUSTMENT SSL SANCTION	/-	20.00		-22,50,020.00
30-Apr-11 (30-Apr-2011)	DEBIT TRANSFER TRANSFER TO	/-	22,50,000.00		-22,50,000.00

Funds already in SB account on 07.07.2011	418965.00
Fund fraudulently debited by adjusting one loan account preclosure to seven loan accounts	125210.00
Balance	293755.00
Fund credited after forcibly preclosing all six one lakhs loan accounts	706278.00
Total	1000033.00
Withdrawal on that day 07.07.2011	1000000
So actual amount we got by preclosure on 07.07.11 was 706278-125210=	581068 only.

Ombudsman's reply :Regarding pre-closure of the six FDs, the bank has informed that you had requested the bank for a loan of22.50 lakh which was opened against fixed deposits of one19.00 lakh deposit and another six deposits of 1.00 lakh each. The bank had sanctioned loan to the extent of 90% of the principal of 25.00 lakh. The total loan amount repayable on 07.07.2011 was22,91,878.00. The preclosure amount of the 19.00 lakh deposit as on 07.07.2011 was 21,66,708/- and this was credited to the loan account directly and the balance due for the loan account was debited to SB account. The bank has denied having advised you to preclose all the deposits, since the loan was liquidated by closure of the 19.00 lakh deposit and the balance of 1,25,210/- from the SB account. Since you were in need of funds for another Rs.6.00 lakhs, the remaining six deposits were preclosed and credited to the Savings Bank account of Mrs Meenakshi Subramanian on her request.

2. Moreover there would not have been any need to preclose my 19 Lakhs Fd loan account on that day as I also have a capital gains avoidance account Fd also for 4750000 with an accrued interest of 10 lakhs on that day. I asked for a loan on that day to meet my need of six lakhs funds.Manager flaty refused saying that no loan can be given on capital gains avodance Fd account. I told him to give loan on the interest accrued and not on principal as interest and loan on interest does not require IT clearance.

3. SBI has replied to ombudsman that there is no need to open seven loan accounts and no loan on capital gain tax.

4. Also the interest rate was 10% for 1000 days for FDs when I opened the capital gains avoidance Fd and the manager refused to give 10% and gave 9% and my request for additional 50 basis points more interest as the amount was more than 15 lakhs .was also refused by him saying that for capital gains Fd ,he will give only 9%.

Whether he can do so?

Can anyone help me. I want to go to consumer forum.

Thanks