If you are stuck in such a situation, here is what to do.

Mr. Verma had a savings account with a prominent institution, “Global Trust Bank,” which he had opened as a minor. Due to prolonged inactivity, the bank closed the account and issued a cheque for the remaining balance in early 2023. At that time, Mr. Verma was away in his hometown attending to a family matter and could not deposit the cheque. As per standard banking rules, the cheque expired three months after its issue date. Later that year, around October 2023, he formally requested the bank to reissue the cheque but received no response. After this, the matter slipped his mind. Now, well over a year has passed, and Mr. Verma is wondering if he can still claim his money from the bank.

Advice in such cases

If you find yourself in a similar situation, the underlying principle is that the money is rightfully yours. The bank is merely a custodian, and an expired cheque does not extinguish their liability to pay you. Here are the steps you should take:

• Formally contact the bank again. Submit a written application or email to the branch manager, clearly explaining the situation. Attach a copy of the expired cheque if you have it, and any previous correspondence.
• Escalate the matter to the bank’s nodal officer or grievance redressal cell if the branch does not resolve the issue within a reasonable time. The contact details are usually available on the bank’s official website.
• If the bank remains unresponsive or refuses to cooperate, you can file a complaint with the RBI’s Banking Ombudsman. This is a dedicated authority to resolve customer complaints against banks. The process is free of charge.
• Send a Legal Notice through a lawyer. This often prompts quick action from the bank’s legal department, as they would want to avoid potential litigation.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

Applicable Sections of Law

This situation is primarily governed by banking regulations and civil law rather than criminal statutes like the Bharatiya Nyaya Sanhita (BNS).

• Negotiable Instruments Act, 1881: Section 6 defines a cheque. A standard cheque is valid for three months from the date of issue. While the instrument expires, the underlying debt or liability of the drawer (the bank, in this case) does not.
• Limitation Act, 1963: This Act prescribes the time limit for filing a lawsuit to enforce a legal right. For recovering a debt, the limitation period is generally three years from the date the cause of action arises. In this case, the cause of action would likely arise from the date the bank refuses to pay the amount.
• Reserve Bank of India (RBI) Guidelines: The RBI issues various circulars and master directions that govern customer service, grievance redressal, and the handling of inoperative accounts. Banks are obligated to follow these guidelines.

If you are the complainant

As the complainant seeking your rightful money, your approach should be methodical and well-documented.

• Gather all your documents, including the expired cheque, bank statements, and any communication you have sent to or received from the bank.
• Draft a clear, concise letter to the bank’s branch manager. State the facts, your account details, the cheque details, and your request for a new cheque or direct credit to another account.
• If there is no resolution, follow the escalation matrix of the bank. Move from the Branch Manager to the Nodal Officer, and then to the Banking Ombudsman.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think
• A legal notice is a powerful tool that signals your intent to pursue legal action and often results in a swift settlement.

If you are the victim

Being unable to access your own money can be frustrating. As the victim of the bank’s inaction, you must assert your rights.

• Do not rely on verbal communication. Ensure every interaction with the bank is in writing (email or physical letter with acknowledgment) to create a paper trail.
• Clearly state in your communication that the funds belong to you and the expiry of the cheque is a procedural issue that does not nullify their debt to you.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think
• If you feel the bank is deliberately withholding your funds, you can mention in your complaint to the Banking Ombudsman that this constitutes a deficiency in service.

How the police behave in such cases

The police have no role in such matters. This is a civil dispute between a customer and a bank, not a criminal offence. Approaching the police would be futile, as they would rightly direct you to pursue civil remedies like approaching the bank’s grievance cell, the Banking Ombudsman, or a consumer court.

Police involvement would only be warranted if there were elements of a cognizable criminal offence like fraud, forgery, or criminal breach of trust, which is not the case in a simple instance of an expired cheque from a bank for an account balance.

FAQs people normally have

Can a bank legally refuse to give me my money after a cheque they issued has expired?

No. The bank cannot refuse to pay you the underlying amount. The expired cheque is merely the instrument of payment that has become invalid. The bank’s liability to you remains, and they must provide an alternative means of payment.

Is there a time limit to claim my money from the bank?

While you should act promptly, the money in an inoperative account legally belongs to you. If the bank refuses payment, you generally have three years to file a suit for recovery from the date of their refusal, as per the Limitation Act.

What if the bank keeps ignoring my requests?

If your written requests are ignored for 30 days, you are entitled to file a formal complaint with the RBI Banking Ombudsman. This is often the most effective step after the bank’s internal mechanism fails.

What evidence is required?

To strengthen your claim, you should have the following evidence:

• The original expired cheque, if possible. If not, a copy or at least the cheque number, date, and amount.
• Proof of your identity and address (Aadhaar, PAN card, etc.).
• Any bank statements or passbook entries related to the closed account.
• Copies of all written correspondence (letters, emails) sent to the bank regarding this issue.
• Any acknowledgment receipts for letters submitted to the bank.

How long will the investigation take?

This is not a police “investigation.” The timeline for resolution depends on the channel you use:

• Bank’s Internal Process: This can take anywhere from a few days to a month, depending on the bank’s efficiency.
• Banking Ombudsman: After filing a complaint, the Ombudsman’s office typically tries to facilitate a resolution within 30-90 days.
• Legal Action: If you file a suit in a consumer or civil court, the process can be much longer, potentially taking several months to years.

Advocate Sudhir Rao, Supreme Court of India