A.O. Nanka has been your customer for twenty years. He is a dealer in petroleum prod-...

A.O. Nanka has been your customer for twenty years. He is a dealer in petroleum prod- ucts. He telephoned this morning to complain that a cheque for GHȼ5 million issued by him payable to Mobil oil co. was dishonored with the answer “Refer to Drawer” and as

a result the oil company has stopped the supply of petroleum products to him. On in- vestigation you discovered that two cheque paid in by him this week totaling GHȼ3 million were credited to A.A.Nanka.

it is a banking operations question

Discuss the banks position in each of the following situations and state what actions you will take

Expert Solution

1. It can be a error by the bank or by the payer itself ,in both the cases as a banker you should ask A.O to mail the details so that there is no miscommunication, If it is wrongly credited to A.A. Nanka 's account A.O can personally request and as a banker you should also request to return the amount .

No recovery is possible is the beneficiary contests the reversal and refuses approval

You cannot take the money back without the wrong beneficiary's consent. The beneficiary has to accept that the wrong transaction is made .

At last A.O.Nanka can take legal action against bank or A.A Nanka if its not an error by A.O Nanka's negligence.

2.It can be fraud transaction also so as a banker you should try to investigate properly if its a fraud , "If there is a fraud in the payment, then it is null and void. But in the normal payment channel,

if transfer is affected and the credit has been made, it is not easy to get back the money, unless the receiver agrees to return it back".

Reasons which results wrong transactions:

Due to human (typing a wrong account number) or technical errors
Human errors due to discrepancies in the account number, IFSC code or both
Technical glitches at the bank's end can also cause the error

POSITION OF BANK:

Bank can only act as a facilitator by providing you the contact number/branch name of the unintended beneficiary

ekkarill92 answered 2 years ago

Over the last twenty years there has been considerable consolidation in the confectionary business (e.g., the...

Over the last twenty years there has been considerable consolidation in the confectionary business (e.g., the acquisition of Rowntree PLC by Nestle SA in 1988 and Cadbury by Kraft in 2010). You have a suspicion that a large food manufacturer might try to buy Tootsie Roll. You want to calculate a DCF valuation for Tootsie Roll. The first step in your valuation is to calculate Tootsie Roll's weighted average cost of capital. Using the data provided below, answer the questions...

Kanchana has been working as an environmental engineer at a consulting firm for over twenty-five years....

Kanchana has been working as an environmental engineer at a consulting firm for over twenty-five years. Well-known for settling disputes between his corporate clients before litigation must be pursued, Kanchana often analyses technical data, particularly distributions of solid particle pollution, presented by disputing parties to help them reach a compromise on the cost of environmental clean-up. For example, two parties may be separated from one another by a strip of land; however, each party must fiscally contribute in keeping the...

Company A has been offered a 5 years contract to supply IT services for a customer....

Company A has been offered a 5 years contract to supply IT services for a customer. If they finally accept to enter that project, they'll have to afford the following expenses: Cost of equipment: 300,000€; Working capital required: 30,000€; Upgrading of equipment after 3 years: 100,000€ and, at the end, the residual value of the equipment will be of 30,000€ In case they decide to enter that project, the annual cash inflow will be 150,000€. The working capital will be...

Case Scenario Sam is a twenty-eight-year-old man who has lately been drinking a lot. He is...

Case Scenario Sam is a twenty-eight-year-old man who has lately been drinking a lot. He is also seeing a counselor, whom he told that his alcohol consumption has increased because he wants to regain the buzz in his life. He confessed that all his attempts to go without drinking had failed in only about four days of remaining sober. He also mentioned that when he attempted to refrain from drinking, he experienced mood swings, stomach irritation, and sleeplessness, but denied...

1. A Scrap metal dealer has received a bulk order from a customer for a supply...

1. A Scrap metal dealer has received a bulk order from a customer for a supply of at least 2000 kg of scrap metal. The consumer has specified that at least 1000 kgs of the order must be high quality copper that can be melted easily and can be used to produce tubes. Further, the customer has specified that the order should not contain more than 200 kgs of scrap which are unfit for commercial purposes. The scrap metal dealer...

Jock Daniels has a small supermarket. He has been doing this for some years and has...

Jock Daniels has a small supermarket. He has been doing this for some years and has decided to start using computers. He has heard there are different computerised accounting systems available. He gives you the following information: - it must be cheap but he is willing to pay more if the system is good. - he would like to get information about inventory. - he would like to get information about which products are selling well and which are not...

Dr. Respected is 77 years old and has been practicing medicine for 50 years. He is...

Dr. Respected is 77 years old and has been practicing medicine for 50 years. He is revered in his community and has been a major face of the largest hospital in the area for quite some time. He is in solo practice as a primary care physician. He is scaling down his practice some but makes rounds in the hospital every day and sees patients in his office. In the hospital he now often consults others to help manage...

Johnny Minor is 16 years old and he has been working odd jobs since he was...

Johnny Minor is 16 years old and he has been working odd jobs since he was about 10. Being unusually industrious, and having inherited some money from an uncle he never knew, he has managed to save enough money to buy the used car of his dreams, which happens to be a classic 1980 Porsche 911 Targa. This particular Porsche model is unusual in that it tends to appreciate in value rather than losing value by the minute. Collectors will...

Coffee drinking has transformed over the last twenty years from the thing that your parents did...

Coffee drinking has transformed over the last twenty years from the thing that your parents did in the morning over breakfast to the trendy thing to do as a social exercise. Likewise, energy drinks like Red Bull and Rock Star have burst into the social zeitgeist with enthusiastic fans and consumers. As a society, how do you feel about the notion that we may be overstimulated? From the constant barrage of advertising to the Internet age of instant information, how...

Timothy has been working as a senior accountant in Dell Headquarter for 10 years. He has...

Timothy has been working as a senior accountant in Dell Headquarter for 10 years. He has multitude of responsibilities, including:  Examining bank statements and reconciling them with general ledger entries  Examining expenses submitted by employees  Keeping an eye on incoming payments from accounts receivable and outgoing payments from accounts payable  Creating company financial reports with the above information included  Analysing data collected in order to determine the state of the company’s financial health  Leading...

Question