Cheques on which Account Payee is written cannot be en-cashed by any person. It allows the money to be transferred from one account to another directly. This ensures that the money is transferred to the payee’s account only. If a cheque is Account payee, the payee cannot endorse it in favor of any other person.
Category Archives: Printing Cheques
Charges on cash withdrawal and deposit using Cheques
In order to decrease the use of cheques, RBI paper has requested the banks to charge their customers for depositing/withdrawing money using cheques. It has also suggested the Government agencies not to charge “convenience charge” for the electronic payment of utility bills.
Other suggestions were to limit the number of free cheques in a year to a very small number, high fee on new cheque books, and mandatory online payment of credit cards issuing post dated cheques.
Handling of EMI with the introduction of CTS
If the customers have issued post dated cheques for the payment of monthly installment towards the ongoing loan then they would have to cancel those cheques and issue new CTS-2010 compliant cheques.