Who is obliged to pay the amount of a cheque?

Section 31 of the Negotiable Instruments Act 1881, provides that “The drawee of a cheque, having sufficient funds of the drawer in his hands properly applicable to the payment of such cheque, must pay the cheque when duly required to do so and in default of such payment must compensate the drawer for any loss or damage …

Do both joint account cheques need to be signed?

“We also hold that under section 138 of the NI Act, in case of issuance of cheque from joint accounts, a joint account holder cannot be prosecuted unless the cheque has been signed by each and every person who is a joint account holder,” a bench of justices P Sathasivam and J S Kehar said.

Can I pay in an out of date cheque?

Technically speaking, cheques don’t have an expiry date. But, in practice, banks will usually reject a cheque if you try to pay it in or cash it more than six months from the date of issue – that’s the date written on the cheque.

Who is a paying banker and duties before payment of cheque?

Paying banker refers to the banker who holds the cheques of the drawer and is obliged to make payment if the funds of the customer are sufficient to cover the amount of his cheque drawn.

Can you deposit a check in a joint account with one signature?

Yes you can. Just write “For Deposit Only”, and the account number on the back of the check without signature.

What to do if a cheque has expired?

If you have a cheque dated 6 months or more ago it may not clear and you should contact the issuer of that cheque and ask for a replacement. If you have written a cheque to a third party and it still hasn’t debited your account 6 months later, you can choose to contact us to stop the cheque.

Why do banks reject cheques?

Banks have to protect themselves against cheque fraud. Without proper proof of identity, banks can legally refuse to honour a cheque made in your name. Always carry proper government-issued identification such as a driving licence or passport, when you intend to cash a cheque.

Why is a cheque returned?

Insufficient funds: A check can bounce when the sender issues what is known as a non-sufficient funds (NSF) check, which is one that an individual doesn’t have enough money in their account to cover. Stop payments: A request not to pay a check that has been issued can also result in a returned check.