SBI did not credit my loan Demand Draft (DD) within validity period of the draft.

POSTED BY Amiet ON September 27, 2013 8:46 am COMMENTS (4)

Hi Manish, I have deposited a top up loan draft from citibank in my SBI babk account home branch & validity of the draft was 1 month & it was outstation DD.

SBI did not credit it saying some admin issues & returned the DD to me 1 month later, even though I have reminded them of the need repeatedly in last 30 days. Since it was a top up loan, my old loan was also merged with it & now both are cancelled & my citi account is asking the payment of complete Principle in one go. I don\’t know what to do. I have met SBI manager who asked to try loan from other pvt banks. Can banking ombudsman help? Your help will be appreciated.

4 replies on this article “SBI did not credit my loan Demand Draft (DD) within validity period of the draft.”

  1. ashalanshu says:

    Dear Amiet, I do understand normal loans and top up loans. My query is based on the general thing – if you availed a DD and same is not used or not credited in time, what ‘ll you do with DD. An alternate way is to ask CITI to reissue the DD with new validity.



  2. Amiet says:

    Top up loan is created by ending the old loan & taking the outstanding principal & adding some more loan amount to it & creating a new loan. Thus in my case the old loan is already cancelled & I could not get the Top up draft cerdited from SBI & now citi is asking for complete repayment of outstanding principal. There is no fault from my side, Can I take SBI to banking ombudsman, as SBI manager is saying he cannot give loan to me as I am not working anywhere currently & being a psu bank they have to follow guidelines very strictly. Plz suggest some way out of it.

  3. Amiet says:

    The main problem is that it is a top up loan draft & one must understand the top up loan features to answer this querry. Had this been a normal loan draft, it would not have been a problem. But still SBI could not credir the DD in the time frame written on the DD I submitted.

  4. ashalanshu says:

    Dear Amiet, as the demand draft is not utilized, the amount should be returned back to CITI. I mean submit the Demand Draft for cancellation of it. what’s the problem in it?



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