Is it true that HR can get employee bank statement without permission of employee only with knowing particular employee bank account number.
From India, Hyderabad
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From India, Hyderabad
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Dear Concerned,
Greetings!
You can't do that; nobody apart from the account holder is eligible to have a bank statement. But why do you want to peek into somebody else's account? Sounds fishy!!
From India, Delhi
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111Greetings!
You can't do that; nobody apart from the account holder is eligible to have a bank statement. But why do you want to peek into somebody else's account? Sounds fishy!!
From India, Delhi
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Hi Prathyusha,
In banks, they will not provide any statement without the account holder's signature. If you have a very good relationship with the bank, they may share the statements, but even that is illegal.
From India, Bangalore
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In banks, they will not provide any statement without the account holder's signature. If you have a very good relationship with the bank, they may share the statements, but even that is illegal.
From India, Bangalore
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I agree with Jeevarathnam P; normally banks do not share the account holders information with anyone (except when there is a court order), if they have done so it’s illegal.
From India, Pune
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From India, Pune
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Respected seniors,
I also wish to share one of my experiences related to this issue with you; may this have some relation with this issue.
I was working with one of the very reputed corporate houses in India, which had recently started CSR activities. They used to deposit imprest money into our salary account. All official, administration, and other expenses were transferred to our salary account. It led to a complete mess up, a lot of problems for us, the finance and operations departments. It was very difficult to track bills, expenses, and reimbursements, and the finance department used to ask for bank statements very often. Finally, at the end of the financial year, three of us were declared defaulters, and we were asked for 30,000/- to 40,000/- as the finance department declared this amount standing unadjusted in our account. No bills and expense claims were submitted by us in lieu of this. It was difficult for us to track the amount transferred, submit bills, and match if the bills were adjusted against the advance/imprest given to us.
Finally, they provided a separate imprest account, and then it was a bit easier for us. This was a case where we had to provide bank statements of our account two times a month, and the finance department used to call to ask for clarification on all deposits and withdrawals made by us to track the imprests and adjustments.
This may be a similar case.
From India, Patiala
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I also wish to share one of my experiences related to this issue with you; may this have some relation with this issue.
I was working with one of the very reputed corporate houses in India, which had recently started CSR activities. They used to deposit imprest money into our salary account. All official, administration, and other expenses were transferred to our salary account. It led to a complete mess up, a lot of problems for us, the finance and operations departments. It was very difficult to track bills, expenses, and reimbursements, and the finance department used to ask for bank statements very often. Finally, at the end of the financial year, three of us were declared defaulters, and we were asked for 30,000/- to 40,000/- as the finance department declared this amount standing unadjusted in our account. No bills and expense claims were submitted by us in lieu of this. It was difficult for us to track the amount transferred, submit bills, and match if the bills were adjusted against the advance/imprest given to us.
Finally, they provided a separate imprest account, and then it was a bit easier for us. This was a case where we had to provide bank statements of our account two times a month, and the finance department used to call to ask for clarification on all deposits and withdrawals made by us to track the imprests and adjustments.
This may be a similar case.
From India, Patiala
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I am not sure, but I equally share your fear based on my experience.
Once, the company credited twice the salary for a given month to my account, and a few days later, I noticed that the amount had been reverted back.
If what other members say is true, then the employer should not have been able to withdraw funds from my account without my explicit permission, as it is my individual account.
Nevertheless, they could have requested or directed me to repay the money, which I would certainly have returned.
If the employer can withdraw money, they certainly can request employees' bank account statements if necessary, as these days corporate organizations have better relationships with banks. Banks offer perks to organizations for directing employees to use selected banks for salary or reimbursement accounts.
I mention this because I have observed organizations having tie-ups with only 1 or 2 banks, which are sometimes not highly reputed, and employees are compelled to open salary accounts with these specific banks.
In a way, the banks might feel obliged to respond to the employer's potentially illegal requests.
I hope my concerns are unfounded, but I cannot shake off my fear.
Regards,
From India
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Once, the company credited twice the salary for a given month to my account, and a few days later, I noticed that the amount had been reverted back.
If what other members say is true, then the employer should not have been able to withdraw funds from my account without my explicit permission, as it is my individual account.
Nevertheless, they could have requested or directed me to repay the money, which I would certainly have returned.
If the employer can withdraw money, they certainly can request employees' bank account statements if necessary, as these days corporate organizations have better relationships with banks. Banks offer perks to organizations for directing employees to use selected banks for salary or reimbursement accounts.
I mention this because I have observed organizations having tie-ups with only 1 or 2 banks, which are sometimes not highly reputed, and employees are compelled to open salary accounts with these specific banks.
In a way, the banks might feel obliged to respond to the employer's potentially illegal requests.
I hope my concerns are unfounded, but I cannot shake off my fear.
Regards,
From India
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Dear Pratyusha,
The banks are not to disclose the banking transactions of individual account holders to any third parties except the Government Authorities like Income-Tax, CBI, etc., under certain specific conditions with proper orders. If the banks disclose or anyone obtains such information from banks, it is illegal and can be questioned before the Court of Law in case of any complications.
Of course, if the company operates any account, like an imprest or contingency account, in the name of any employee, they may be able to obtain the transaction details from the bank with a specific joint agreement of company-bank-employee. However, personal details are beyond the purview of such an arrangement.
The incident mentioned by Getblade does not seem to be a case of double payment by the company but double credit by the bank. Otherwise, he could have at least taken up the matter with the bank as to how they had the authority to withdraw the money without his consent. He had every right to question the bank but not the employer as the transaction point is the banker.
In any case, the idea of peeping into the personal banking transactions of any individual, including an employee, is illegal, leave alone the methods proposed to be adopted for the same.
Regards.
From India, Mumbai
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The banks are not to disclose the banking transactions of individual account holders to any third parties except the Government Authorities like Income-Tax, CBI, etc., under certain specific conditions with proper orders. If the banks disclose or anyone obtains such information from banks, it is illegal and can be questioned before the Court of Law in case of any complications.
Of course, if the company operates any account, like an imprest or contingency account, in the name of any employee, they may be able to obtain the transaction details from the bank with a specific joint agreement of company-bank-employee. However, personal details are beyond the purview of such an arrangement.
The incident mentioned by Getblade does not seem to be a case of double payment by the company but double credit by the bank. Otherwise, he could have at least taken up the matter with the bank as to how they had the authority to withdraw the money without his consent. He had every right to question the bank but not the employer as the transaction point is the banker.
In any case, the idea of peeping into the personal banking transactions of any individual, including an employee, is illegal, leave alone the methods proposed to be adopted for the same.
Regards.
From India, Mumbai
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@Getblade
I have also experienced this twice. First time the bank contacted me and told me that by mistake they credited my salary twice. This was after my company informed the bank that their bank reconciliation statement shows the credit twice. I had transferred all the money to my other account in another bank which is near my house. And the balance in my bank account was a few hundred rupees. Hence, the bank contacted me. I told them its the bank's mistake and they can take it but will pay in two instalments. They agreed and took the letter from me and deducted the money from my salary in the subsequent 2 nths.
Second time, I was based in Delhi and my account was credited twice. They automatically reversed the credit. But my passbook showed credit twice and a debit. When I checked with my financé team, they told me that the bank had made a wrong entry and so it was corrected. And they are within their rights to reverse the credit.
In such cases, either the bank reconciles in the evening itself, the day ledger and finds a dual credit and they correct it. Or when the bank sends a bank reconciliation statement fortnightly to the company, the company points out the mistake. And the bank then reverses the credit. This is absolutely legal.
But, the bank under no circumstances can share your account details with anyone else. Not even with your wife, who could be a nominee. It can be done only when the nomination comes in to force. That means when the account holder dies, the account details are shared only with the nominee and not even with legal heirs. And so there is no question of employer seeking account information
Regards
From United+States, San+Francisco
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I have also experienced this twice. First time the bank contacted me and told me that by mistake they credited my salary twice. This was after my company informed the bank that their bank reconciliation statement shows the credit twice. I had transferred all the money to my other account in another bank which is near my house. And the balance in my bank account was a few hundred rupees. Hence, the bank contacted me. I told them its the bank's mistake and they can take it but will pay in two instalments. They agreed and took the letter from me and deducted the money from my salary in the subsequent 2 nths.
Second time, I was based in Delhi and my account was credited twice. They automatically reversed the credit. But my passbook showed credit twice and a debit. When I checked with my financé team, they told me that the bank had made a wrong entry and so it was corrected. And they are within their rights to reverse the credit.
In such cases, either the bank reconciles in the evening itself, the day ledger and finds a dual credit and they correct it. Or when the bank sends a bank reconciliation statement fortnightly to the company, the company points out the mistake. And the bank then reverses the credit. This is absolutely legal.
But, the bank under no circumstances can share your account details with anyone else. Not even with your wife, who could be a nominee. It can be done only when the nomination comes in to force. That means when the account holder dies, the account details are shared only with the nominee and not even with legal heirs. And so there is no question of employer seeking account information
Regards
From United+States, San+Francisco
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Well, only an account holder can have access to the bank account statement. Just having someone else's account number does not give you access to the bank account statement. You must have special authority to access it, such as in cases of fraud or other illegal matters where special bureau officers have the authority to access anyone's account who is associated with that.
From India, Lucknow
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From India, Lucknow
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Dear Prathyusha,
Is it true that HR can get an employee's bank statement without the employee's permission, only with knowledge of the particular employee's bank account number?
Banking institutions do not provide employees' bank statements to HR as it violates RBI guidelines to release a customer's bank statement to another person without the customer's permission. However, they can provide confirmation regarding outstanding dues on corporate credit cards or loans issued through the company. This allows for the settlement of liabilities before an employee is released from their services.
I hope this clarifies your query. Let me know if you need further information.
From India, New Delhi
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Is it true that HR can get an employee's bank statement without the employee's permission, only with knowledge of the particular employee's bank account number?
Banking institutions do not provide employees' bank statements to HR as it violates RBI guidelines to release a customer's bank statement to another person without the customer's permission. However, they can provide confirmation regarding outstanding dues on corporate credit cards or loans issued through the company. This allows for the settlement of liabilities before an employee is released from their services.
I hope this clarifies your query. Let me know if you need further information.
From India, New Delhi
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