If you have a teller make an encoding error on a withdrawal slip and the moneys get debited from a wrong account, for how long the bank would be liable to make reimbursement?

In My Opinion, since it is the bank's error, I do not think there is a time limit especially if you know about the error.

Agree. I don't believe there should be a timeline limit, specially when the error was made by a bank employee when encoding the account.

Out of curiosity, Cat Lover - how long has it been?

I agree that the bank should fix regardless of the timeframe however we had a similar situation - transfer done at a branch took money from the right account and credited to the wrong account. all accounts were closed long before the error was discovered. I don't know all the specifics or even if the intended recipient was ever given the proceeds or how they went about trying to collect from the customer that received the money (or even if they tried).

I once banked somewhere that was closed by the FDIC, but I had closed my account more than 5 years prior...FDIC was reviewing outstanding items and noticed I had a check written for $50 that the bank encoded for $25, and sent me a notice to pay the $25 difference.