Can Salary Be Deposited & Then Withdrawn By Company?

Greetings of the day to all!

Can a company deposit salary in an employee's account and then withdraw the same in a day or two? Request you to please throw some light on this.

Hi,

Yes, you can do that if you have paid the extra amount. Basically, a valid reason is required.

Regards,
Gurleen

Hi,

I believe that once the deposit is made, the company cannot take any action. However, if the transaction has not yet been processed, they can still stop it.

If you have a salary account, then, as per my information, there is a clause in the account opening form which allows the company to withdraw the credits/deposits made in that account during a specific time frame (most probably the last 3 months).

Rakesh

Hi,

This situation arises when an extra amount (incentive, conveyance) is deposited into a particular account or when another person's salary is credited to a single account. However, when they transfer the funds back, a valid reason must be provided.

You can verify this with the payroll or commercial department of your organization.

Dear All,

This can very much be done. In case if a person's salary has been processed and he resigns around that time and has a notice period shortfall or is falling short of leave balance, then the company can withdraw the salary. Alternatively, as mentioned by others, if an extra amount has been deposited by mistake. Of course, my guess is it can only be done if one has a salary account, and the time period with most private banks, I guess, is 2 working days.

Hi All,

It is very much possible in the case of salary accounts with private banks. All you need to do is provide an indemnity agreement on a stamp paper signed by the authorized signatory. With that indemnity, we shall freeze the salary account of any employee and reverse any transaction you have made. The above transaction holds good if the account has sufficient funds to reverse. If the employee has withdrawn any amount in the meantime, then there is absolutely no possibility of a reversal transaction. For further details, contact your corporate salary account relationship manager.

Regards,
Gokul Nathan Subramanian

Dear friend,

It is not possible for a company to withdraw the salary from the account of the employee.

Sanjeet

Once salary, or for that matter any amount, is credited to a bank account, it cannot be reversed or withdrawn by the bank. If any mistake has occurred and the employer is able to convince the bank suitably, only then, after obtaining indemnity and all necessary documentation, the bank may consider reversing the entry.

This is done as an exception and not as a routine practice. The bank may accept such requests from the employer to maintain good relations.

An account holder can object to such reversals, and the bank may have a tough time responding to the account holder.

Thanks & Regards

Greetings of the day to all!!!! Can a company deposit salary into an employee's account and then withdraw the same within a day or two? Request you to please shed some light on this.

Dear Gokul,

Gokul is absolutely correct. If that person has withdrawn the money from the account, we won't be able to reverse the transaction. However, if there is a sufficient amount in the account, we can process a reversal. If you freeze the account after the withdrawal, it will serve no purpose.

Thank you.