Negligence leading to fraud

I was just reading the Outlook Money and came across a customer complaining. Here is what happened to him:

He had a HSBC account in Delhi which was designated to receive his investment income. So when he shifted to south india, he didnt closed the account. He started using a new saving account there and occassonaly would use the Delhi account using an ATM card. Some two years ago his ATM card became inactive and hence he stopped using the account. Now when he checked, he realised that someone has fradulantly withdrawn 29,000 Rs using an ATM card. He was shocked.

This is purely a case of negligence on his part. He should have changed the address of communication, since the bank might have issued another ATM card on his old address along with sending him a PIN number. Someone must have used this ATM card and pin code to access his funds.

As soon as you shift your location, you immediately have to inform all the banks you deal with about the change of address. But there are banks like SBI, where change of address is a tedious process. I once went to the SBI to change my address from delhi to hyderabad branch and what they told me shocked me. They told me that I first have to submit my pass-book/cheque book and all other bank account details in the hyderabad branch, then they will send a request of cancellation of my account in the delhi branch and create a new account in this branch. This entire process might take 2-3 months.


  1. This is really useful information!

  2. oh my god, i'm struggling hard to change my address with HDFC bank. they are unrelenting to my plea that i dont have a valid legal resident address in India, and the only proof i can provide them is something that is on my father's name. (they are asking me telephone bill/utility bill/ration card/ pp, none have the address i intended)

    At last, I wired all my money to Citi global account, HDFC lost a loyal customer.

  3. Harsha, you cannt expect HDFC to change the address without any proof.. do you? If that can be done.. how can you control the frauds?