Question

Briefly explain the statement ‘wrongly debited by the bank’ with the help of
an example.

Answer 1

The correct answer is mentioned below:

Explanation:

• The term "debit" means removal or withdraw.
• It is mostly used in financial transactions.
• In the bank, money of a person is maintained in an individual's account.
• If the individual deposits or adds money into his account then his account is said to have been credited with the new sum of money and the amount of money in his account increases.
• If the individual withdraw money from his account then his account is said to have been debited and the amount of money in his account decreases.
• Here the term, ‘wrongly debited by the bank’ means by mistake and without authorisation of the holder of the account, the bank has transferred a certain sum of money from the account of the individual to some other account.
• For example,  ‘Rs 2000 is wrongly debited by the bank’ means, two thousand rupees is transferred from the account of the individual to some other account by the bank without the permission of the individual.