If money is credited from unknown source is it legally binding to inform the bank?

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    What do you mean by "legally binding?" Are you trying to determine if you'r required to report the money? Or are you trying to determine if you are bound to some outcome if you do decide to inform them? – dwizum Nov 25 '19 at 18:43
  • By legally binding I mean if I don't inform the bank on my own and spend the money instead the bank is able to prosecute me. – Joy Nov 26 '19 at 1:53
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    When the bank finds the missing amount, they will ask you to return it. So it is upto you if you can return the money after spending it.They can take you to court to recover the amount, if you don't bother returning. – DumbCoder Nov 26 '19 at 8:45
  • I have read similar answers in google search but didn't find anything from credible source like RBI documentation. My confusion is if for a peer to peer transfer the responsibility lies with the payer to give correct account address for the payee and bank cannot initiate return without the consent of payee so why in case of wrong transaction originated by the bank, consent of payee is not enforced? – Joy Nov 26 '19 at 13:02
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    So what are your intentions exactly ? Why do you want to take something which is not yours ? Sooner or later the bank will realize the mistake and ask you to return the money, so why don't you return it in the first instance. – DumbCoder Nov 27 '19 at 9:39

In a comment you clarified your question:

By legally binding I mean if I don't inform the bank on my own and spend the money instead the bank is able to prosecute me.

It likely depends on the type of transaction that caused the credit, among other factors. In most banking systems, there are a range of ways money can arrive in an account, and they have very different rules associated with them. Ultimately, it probably doesn't matter if you tell the bank or not - if the money is not supposed to be there, and it was deposited via a reversible method, all it takes is any other party involved to inform the bank and remove the money. Even that said, true errors do happen even with non-reversible transactions and banks may simply decide to error correct in that event.

Rather than worry about your liability for reporting the transaction, you should probably be more concerned that someone else will eventually discover the mistake and reverse the transaction. Ultimately, if you have no legitimate claim to the money, it's not yours, regardless of whether you tell anyone or not.

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At the point when a record is credited with a mess of cash originating from an obscure source. Presently it doesn't really make a difference that the sum has originated from any specialized glitch, wrong exchange or unjustifiable methods. It doesn't have a place with you, Even in the event that you move it to another record you will be at risk to take care of it or deal with lawful indictments.

Accepting a sum doesn't make you a convict yet utilizing that cash for your own motivation is a wrongdoing without a doubt. On the off chance that you Google it you will without a doubt part of situations where individuals have dealt with indictments state it isn't right exchange or specialized glitch.

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