ICICI bank car loan PDC question

[CarSalsa]

Question to all the BHPians who have successfully closed there car load this year with ICICI Bank:

My ICICI car loan is about to end in few months time and to stay on safer side I contacted the bank to return the two high value PDC (post dated cheque) and they can keep one PCD with them until the loan in cleared. To my surprise I have received a response from them which read like as follows :

Currently, ICICI Bank has started destroying the Security Post Dated Cheques submitted by you at the time of application, for the security reasons.
The cheques will be shredded within 30 days from the date of the closure of the loan account.
Hence, we are unable to return the Security Post Dated Cheques to you.

Now my question is, is this true or they are fobbing me off on knowing the fact that I am a NRI and can't visit their Branch ?

[kannan666]

My cousin had got himself a car loan from ICICI Bank but apart from the EMI PDC cheques, they have not collected any high value PDC. Was this collected from you primarily because you are an NRI ? And did those two cheques cover the total amount of the loan ?

[bblost]

Why not reply back saying that since they are being destroyed, you will instruct your bank to not honour them.

[Live To Jive]

Originally Posted by bblost

Why not reply back saying that since they are being destroyed, you will instruct your bank to not honour them.

Don't bother telling ICICI. Just inform your bank to stop payments on those cheques.

[predatorwheelz]

Originally Posted by Live To Jive

Don't bother telling ICICI. Just inform your bank to stop payments on those cheques.

From a banking laws viewpoint, there is nothing abnormal with your bank deciding to destroy security cheques instead of returning them to you. In any case, these were made payable to ICICI, and you wont be able to use them anywhere else.

However, I support Live to Jive. Strange things are known to happen in the Indian Banking Scenario (especially where it concerns a few players) and there is nothing wrong in handing out a stop payment instruction on those cheques, just to be safe.

[CarSalsa]

Originally Posted by kannan666

My cousin had got himself a car loan from ICICI Bank but apart from the EMI PDC cheques, they have not collected any high value PDC. Was this collected from you primarily because you are an NRI ? And did those two cheques cover the total amount of the loan ?

I have choosen the option of direct bank debit to pay off the EMI, but the bank has taken 3 PCD as security.
1. Total loan amout + Interest
2. Two cheque of 1/5th loan amount.

The loan was taken in 2005.