Salary Credited Then Reversed by Bank: What to Do Next

This guide is for a person, family, small business or professional facing salary credited then reversed by bank. It turns the problem into a sequence of practical steps: preserve proof, ask the right office for a written decision, escalate through the correct channel, and use RTI only where records from a public authority will help.

Reviewed on: 2026-05-30.

Keep one clean file with the application, payment proof, screenshots, notices and every acknowledgement before escalating. Realistic editorial illustration, Indian context, no logos or government emblems.

1. First level: local branch, helpdesk, school, hospital, department section, service centre, buyer, portal officer or company grievance cell.
2. Second level: nodal officer, regional office, principal, registrar, municipal grievance officer, tender inviting authority, bank principal nodal officer or platform escalation team.
3. Regulatory or public grievance level: use the official portal relevant to the subject, such as RBI CMS, National Consumer Helpline, e-Daakhil, CPGRAMS, EPFO grievance, GST portal, Income Tax portal, GeM, Passport Seva or the state department grievance route.
4. Formal legal level: consumer commission, RERA, ombudsman appeal, labour authority, court, tribunal, police complaint or writ remedy where the facts justify it.

RTI applies to salary credited then reversed by bank only where a public authority holds the relevant record or supervises the file. Use RTI for file status, date-wise movement, copies of deficiency notes, inspection reports, payment release notes, dispatch records, rules relied upon, and inter-office correspondence. RTI does not directly compel a private bank, builder, hospital, insurer, employer, exchange or platform to pay compensation unless the requested information is held by a public authority. For private entities, use the regulator, ombudsman, consumer forum, contractual notice or court route while using RTI to collect government-side records.

• RBI CMS complaint portal
• RBI official website
• RBI Sachet portal

• Labour Department Complaint Against Employer: Salary, PF, Gratuity
• Can a Bank Deduct Your Entire Salary for an EMI? — citizen guide 2026

• /practical-guides/
• /practical-guides/category/banking-and-finance/
• /practical-guides/bank-account-debit-freeze-cybercrime-lien-removal/
• /practical-guides/upi-fraud-complaint-closed-without-refund-escalation/
• /practical-guides/credit-bureau-shows-settled-status-after-full-payment/

Save the closure screenshot and file a second-level complaint asking for the reasons, the record examined, and the remedy refused. A closure without reasons is often easier to challenge than a reasoned rejection.

When your salary is credited then reversed by the bank, here is the complete guide:

1. Step 1: What happens? (a) employer deposits salary to your account (the salary is credited — you see it in your bank statement and SMS), (b) the bank reverses the credit (the salary is debited back — sometimes on the same day, sometimes days later), © you may not be informed (the bank does not send a notification — you discover it when checking the balance or when a cheque/UPI bounces).
2. Step 2: Common reasons. (a) wrong account number (the employer entered a wrong digit — the credit went to the wrong account, and the bank reversed it), (b) account frozen (the account was frozen due to KYC non-compliance, suspicious transaction, or court order — the credit was reversed), © duplicate credit (the employer sent the salary twice — the bank reversed the second credit), (d) employer recall (the employer requested a recall — claiming the salary was paid by mistake or in excess), (e) system error (the bank's system credited by mistake and then auto-reversed).
3. Step 3: How to prove the deposit. (a) obtain the salary certificate from the employer (the employer confirms that the salary was deposited on [date] to account [number] — with UTR/transaction reference number), (b) download the bank statement (showing the credit and the reversal — with dates and amounts), © obtain the UTR (Unique Transaction Reference — the employer can provide this from their bank), (d) check with the employer's bank (the employer's bank can confirm that the transfer was initiated — and the status: “credited”, “reversed”, “pending”).
4. Step 4: How to recover. (a) file a written complaint with your bank (attach the salary certificate and UTR — request re-credit), (b) if the reversal was due to wrong account number: the employer must re-initiate the transfer with the correct account number (the employer should verify the account number before re-initiating), © if the reversal was due to account freeze: resolve the freeze first (KYC update, respond to the court order, etc. — then request re-credit), (d) if the reversal was due to employer recall: challenge the recall (the employer cannot recall salary without justification — demand a written explanation).
5. Step 5: Escalate to Banking Ombudsman. (a) if the bank does not resolve within 30 days: file a complaint with the Banking Ombudsman (RBI — at rbi.org.in), (b) the Ombudsman can order the bank to: (i) re-credit the salary, (ii) pay compensation for the harassment, (iii) pay compensation for any financial loss (e.g., bounced payment charges, late payment fees on loans), © the complaint must be filed within 1 year of the cause of action.
6. Step 6: File RTI. File RTI with your bank (if public sector bank) asking for: (a) the transaction details for UTR [number] dated [date] (whether the amount was credited to account [number]), (b) whether the credit was reversed (if yes: the date of reversal and the reason), © who authorized the reversal (the name and designation — and the basis: wrong account, freeze, recall, system error), (d) whether the employer requested a recall (if yes: provide the recall request with date and details), (e) the bank's policy on salary credit reversal (is there a written policy — if yes, provide a copy).
7. Step 7: Employer dispute. (a) if the employer recalls the salary: demand a written explanation (the employer cannot recall salary without stating a reason — and the reason must be valid), (b) if the employer says “excess payment”: ask for the calculation (compare with the salary structure — verify if the excess is genuine), © file a complaint with the Labour Commissioner (the employer cannot recall salary unilaterally — this is an unfair labour practice), (d) file a civil suit for recovery (if the employer does not re-deposit — the court can order recovery with interest).

See Joint Account Operation and Find PIO.