Is cheque required for ECS?

Ans : Yes. Any mandate in ECS Debit is on par with a cheque issued by a customer. The customer has to maintain adequate funds in his / her account with the destination bank branch to ensure the ECS Debit instructions are honoured when presented.

How can you prove that a cheque was given as security?

Cheque was given as a security and was misused. In this you can either ask the complainant to bring account statement with all your payments towards the debt. Simply by exhibiting statement will show there was no debt due at the time of issuance of the cheque and therefore the cheque was misudsd.

Can we take cheque as security?

A cheque issued as security under a financial transaction cannot be considered as a worthless piece of paper under every circumstance, the Supreme Court on Thursday said. It said that ‘Security’ in its true sense is the state of being safe and the security given for a loan is something given as a pledge of payment.

What happens if I stop a cheque?

New Delhi, Aug. 31: Even a “stop cheque payment” instruction to his bank can land a person in jail. Normally, it is understood that if a cheque bounces because of insufficient funds, the payee can initiate criminal action against the drawer under the act, which may lead to imprisonment for up to a year.

Is ECS mandatory for home loan?

When you take a loan, an ECS payment mandate is necessary. This mandate instructs the clearinghouse to debit monthly EMIs from your bank accounts and credit the funds into your loan account, or to the lender’s account on a fixed date.

Does ECS require IFSC code?

5) IFSC codes are needed For NEFT, you need the IFSC codes, while in the case of ECS, since it is just a one time instruction, you need not bother too much.

Is blank cheque legal?

Supreme Court has held that even a blank signed cheque given for payment will attract the presumption of liability and that filling of cheque by other person is immaterial. It is immaterial that the cheque may have been filled in by any person other than the drawer, if the cheque is duly signed by the drawer.

Do I have to submit blank cheques against my loan?

Not at all.None of the bank will ask you to submit blank cheques against your loan. It’s illegal. Earlier it used to happen with some of the co-operative banks. However, it’s completely stopped now.You can submit 3 to 4 PDC (Post Dated Cheques) to the bank and also keep photo copy for your records.

Can a blank signed cheque be used to debit your account?

1> A blank signed cheque is vulnerable to be misused and in this case bank is asking for it as a ill means way to debit your account with your permission in case of your non repayment of your loan. But its odd for the bank to take such action as bank already holds the right to debit your account as per loan documentation done.

Can I sue a bank for a cheque that is post dated?

Generally these post dated cheques are taken for a loan security and one can sue on the NI act after cheque gets Dishonored Banks ask for a cancelled cheque of the same account thorugh which you intend to repay the loan.

What are the chances of blank cheques being misutilised by banks?

There is no chance of cheques being misutilised by any bank. As a matter of abundant precaution one may mention his loan account number in the postdated cheques to avoid possible misuse if any. Providing blank cheques duly signed (presumed) is fraught with risk. Banks can fill entire loan balance and seek recovery.