category

Use CTS Cheques Only Banks should use “CTS 2010” cheques which are not only image friendly but also have more security features. Using Stamps on Cheques With Care Banks should exercise care while affixing stamps on the cheque forms, so that it does not interfere with the material portions such as date, payee’s name, amountRead more

To avoid cheque bouncing, as a customer who is issuing a cheque you should: Ensure that the cheque has CTS 2010 written on it. Preferably use image-friendly coloured inks like blue and black while writing cheques. Avoid using inks like green and red. You should also avoid any alterations/corrections once you have written the cheque.Read more

In a cheque bounce case, there is a possibility for settlement out of court. When a criminal complaint is filed for a cheque bouncing case, the law allows for settlement. This is done through a legal concept called compounding of offences. In this process, the payee/holder of the cheque agrees to not file a courtRead more

There can be false cheque bounce cases. It is possible that a cheque could be wrongfully dishonoured by the bank, either due to negligence or mistake on part of the bank. This amounts to the offence of ‘deficiency in service’ in consumer law. If this has happened to your cheque then you can file aRead more

There is a specified time period for filing a complaint about cheque bouncing. You must file the case in court within one month after the 15 day notice period has expired. The Court will not entertain your complaint beyond that time period. However, if you can show sufficient cause for why you did not fileRead more

When a case of dishonour of cheque is filed against a company then every person who was in charge of the conduct of the business of the company, as well as the company will be held guilty of the offence. However, if the person in charge of the company proves that the cheque was dishonouredRead more

Complaint to Recover the Cheque Amount Such a complaint is a civil complaint. In order to recover your money, you need to file a money suit either in the City Civil Court or the District Court depending on how much amount you are looking to recover. You have to file this case within three years of the ChequeRead more

To file a case for cheque bouncing, certain conditions have to be met. You can file a civil or criminal complaint under the law if the following conditions are fulfilled: X owes you some money and issued a cheque to pay it. You presented the cheque for payment within the period of its validity (3Read more

Cheque bouncing is both a civil and criminal offence. You can file a civil suit to recover your money as well a criminal complaint to punish the person for bouncing your cheque. The proceedings for both will happen in two different cases. You can choose to file only one case or you can file theseRead more

Cheque bouncing is a criminal offence and you can be arrested by the police. However, it is important to note that the police cannot arrest you without a warrant. In most cheque bouncing cases, a warrant for your arrest is issued if you do not appear before the Court after being summoned. The crime ofRead more

If a cheque you issued has bounced, Intention of the drawer of the cheque does not matter. It is irrelevant whether or not you intended to for your cheque to bounce. Even if the bouncing of the cheque has happened without ill intent or malice it is considered illegal and a crime under the law.Read more

Sending a notice after a cheque has bounced. Punishing the Issuer of the Cheque Send a demand notice If a cheque that you’ve received as payment has bounced, you must first send a notice to the issuer of the cheque to pay the amount that was due, along with the cheque return memo that youRead more

One of the ways in which a cheque is said to have been ‘bounced’ or ‘dishonoured‘ is when it is deposited or presented for payment but could not be encashed by the holder of the cheque. There are several reasons why a cheque would bounce. However, not all of them amount to a crime. ItRead more

When you fill a cheque either without the authorisation of the account holder or exceed the amount you were authorised to fill then you have committed a crime. This is known as forging a cheque The punishment for this offence is jail time up to two years and/or a fine. Examples Mustafa took a blankRead more

There are several reasons that could cause problems in cheque processing and lead to cheque bouncing. But not all of them warrant legal action. For example, a cheque could bounce if the sign of the drawer does not match with the account. A detailed list of these reasons has been provided by the Reserve BankRead more

Cheques can be issued to a person holding a bank account in a bank branch in the same city or outside. When the cheque is issued to a person outside the same city then it becomes an outstation cheque. Speed Clearing is a process that makes it possible to clear such cheques, locally. With theRead more

Cheque truncation is a form of cheque clearing system. It digitises a physical paper cheque into a substitute electronic form. This is done for transmitting the amount of money mentioned on the cheque to the paying bank. This is also referred to as ‘Local Cheque Clearing’. In this process, an electronic image of a chequeRead more

Cheque Clearing means processing a cheque from one bank to another by transferring the amount mentioned on the cheque to the payee’s account. The two most commonly used forms of cheque clearing systems are: Cheque Truncation System Speed ClearingRead more

The signature on a cheque means that the person who has signed it is giving permission to the bank to take money out of his or her account. When you give a cheque to the bank, keep in mind the following: Make sure the signature of the person who issues the cheque matches with theRead more

Follow these steps to encash a cheque. Analyse the type of cheque that has been issued to you. Bearer Cheque If it is a bearer cheque, then there will be no name written on the cheque. You can: Go to any branch (in the city) of the bank that the cheque belongs to Present itRead more

Endorsing cheques means that if you have an order cheque then you can endorse it to someone else. Endorsing means the payee can use the same order cheque to pay to someone else (the creditor) by writing that person’s name on the back of the cheque and signing it. When a person gets an endorsedRead more

If the words “cancelled” has been written on the cheque then, it is known as a cancelled cheque. Usually, the word cancelled is written across the cheque leaf in a big font, so that it is clear to anyone seeing the cheque, that it is a cancelled cheque. The purpose of giving anyone a cancelledRead more

An order cheque is a cheque where only the person or party in whose name the cheque has been drawn, can withdraw the cash. The person collecting the cheque has to give an identity proof to encash the cheque. In such cheques, you have to strike out the words “or Bearer” and specify the personRead more

If you have a bearer cheque, then you can present it to the bank and get the cash amount written on it. Any person can give the cheque and collect the money written on it. For Example: If Sanjana presents the bearer cheque at the bank counter for encashment, the amount will be paid inRead more

An uncrossed cheque or an open cheque is a cheque that has not been crossed with two parallel lines on the top left corner. Such cheques can be encashed at any bank. You can collect the money for the cheque from the bank counter. It can also be transferred to the bank account of theRead more

Crossing a cheque means that it cannot be transferred to anyone else. In such cheques, you have to draw two parallel lines on the top left corner of the cheque and you can write the words “Account Payee Only” or “Not Negotiable” with it. For illustration purposes only These cheques cannot be encashed at theRead more

A valid cheque is one that can be presented to the bank in order to receive money from the drawer’s account. The validity of the cheque will depend upon the date it was issued. Once a date has been written on a cheque at the time of issuance, it will only stay valid for upRead more

Let’s understand how cheques work. A cheque is a promise made in writing by one person to another to unconditionally pay a specified amount of money. However, you can also write a cheque to yourself. For example, if Amit owes Asha Rs. 10,000, he can give Asha a cheque of Rs. 10,000. When Asha presentsRead more

There are certain precautions to be taken by banks when dealing with cheques. Use CTS Cheques Only Banks should use “CTS 2010” cheques which are not only image friendly but also have more security features. Using Stamps on Cheques With Care Banks should exercise care while affixing stamps on the cheque forms so that itRead more

There are certain precautions to be taken by customers when dealing with cheques. Ensure that the cheque has CTS 2010 written on it. Preferably use image-friendly coloured inks like blue and black while writing cheques. Avoid using inks like green and red. You should also avoid any alterations/corrections once you have written the cheque. Preferably,Read more

 Settlement out of court can happen when a criminal complaint is filed for a cheque bouncing case. The law allows for settlement through a legal concept called compounding of offences. In this process, the payee/holder of the cheque agree to not file a court case or agrees to withdraw his court case in exchange forRead more

 There can be cases of banks falsely bouncing cheques. It is possible that a cheque could be wrongfully dishonoured by the bank. This can happen either due to negligence or mistake on part of the bank. This amounts to the offence of ‘deficiency in service’ in consumer law. If this has happened to your chequeRead more

There is a specified time period for filing a complaint about cheque bouncing. You must file the case in court within one month after the 15 day notice period has expired. The Court will not entertain your complaint beyond that period. However, if you can show sufficient cause for why you did not file within theRead more

When a case of dishonour of cheque is filed against a company then every person who was in charge of the conduct of business of the company, as well as the company will be held guilty of the offence. However, if the person in charge of the company proves that the cheque was dishonoured withoutRead more

Complaint about Cheque Bouncing Complaint to Recover the Cheque Amount Such a complaint is a civil complaint. In order to recover your money, you need to file a money suit either in the City Civil Court or the District Court depending on how much amount you are looking to recover. You have to file this caseRead more