April 16th, 2013 by CHEQUEMAN
• Notice should be issued to the payer within a month of the dishonor of the cheque. if it is not issued within a month then the cheque needs to be presented to the bank again and the notice can be issued after the cheque bounces.
• After the notice, 15 days should be given to the payer to make the necessary payments.
• If not paid within 15 days, then a suit can be filed in the court within a month after the 15 days notice period.
Steps for giving notice and for filing a suit in the court
1. Notice to be given within a month of the date of cheque bounce.
2. It should be sent to the payer through a Registered Post along with the acknowledgement receipt.
3. One copy of notice should be sent to UPC as well.
4. The documents required while filing a suit are complaint letter, oath letter and photocopy of all the necessary documents such as cheques, memos, notice copy and acknowledgement letter.
April 12th, 2013 by CHEQUEMAN
From the past few years, banks have been adding certain patterns and designs on the cheques so as to increase the security of cheques and to prevent cheque misuse, tampering or alterations. However, due to excessive use of ‘at par payable’ cheques or multi city cheques, RBI has decided to standardize the cheques in terms of size, MICR band, quality of paper, etc for easier, secured and faster clearing.
April 9th, 2013 by CHEQUEMAN
1. Signature not matched.
2. Overwriting in cheques
3. Presented in bank after completion of 3 months.
4. Account is closed.
5. Insufficient funds in the account.
6. Payment is stopped by the account holder.
7. Opening Balance is insufficient.
8. Amount written in words and figures differ.
9. In case of a Company, The company seal is missing.
10. Account number does not match.
11. In case of joint account, only one holder signs whereas both the holders’ signature is required.
12. On the death, insanity or insolvency of the customer.
13. In case of crossed or altered or doubtful cheques.