Can a bank stop the online transfer facility to its loan account without telling customer?

POSTED BY naveenkaplas ON June 25, 2014 5:43 pm COMMENTS (2)


I have taken a loan from Kangra Coop Bank Dharamsala (H.P) and I was transferring a regular amount to this account through online from my ICICI account. But without any intimation to me the KCC Bank blocked the online transfer facility to this loan account. According to my standing instruction ICICI account was sending the amount. As KCC blocked this facility at their own level, amount transferred gets reversed to my ICICI account.

Now when I contacted KCC authorities they say that as now account has become NPA, NEFT facility can not be restored. Now I will have to send payment through cheque or bank draft, which is not convenient. My query is whether a bank a withdraw such facility suo motto and frustrate the attempt of a customer to transfer money to its loan account.

2 replies on this article “Can a bank stop the online transfer facility to its loan account without telling customer?”

  1. naveenkaplas says:

    Thanks for valuable suggestion

  2. Hemanth Chandra says:

    File a complaint with the KCC bank grievance cell asking the reason for stopping this facility and not mentioning you about this.

    Do mention in the complaint that you will complain the same to banking ombudsman if you are not satifactory with the reason for this.

    Problems like these will come with co-op banks.

    If at all, they didn’t respond to your complaint, file a complaint with the banking ombudsman.

    As an option, ask them whether you can give post dated checks instead of sending the check everymonth.

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