Some Important Things to Remember
Cheque truncation-Electronic Image
Notice of dishonour waived mentioned in an endorsement - Facultative endorsement
Endorsement without recourse-Sans recourse endorsement
In crossing where banks name is included-Special crossing
Not negotiable crossing indicates that payee has got a better title.
Difference in words and figures-Amount in words to be paid.
As per CTS 2010- Amount in words is called as legal amount and amount in figures is called as courtesy amount.
Cheque drawn in different inks-Pass the cheque
Cheque drawn in pencil pass the cheque
Cheque having impossible date like 31/11/2012 presented on 30/11/2012 pass the cheque.
Cheque dated prior to date of account opening – Pass the cheque.
Bearer cheques - Pass the cheque.
Validity of a Cheque - 3 months
Immediate credit of outstation cheques - Rs 15000
Minor becomes major at the age of 18, if guardian is appointed by court he becomes major at the age of 18.
Minor can endorse but will not be liable
Missing person-A person is presumed to be died only after of lapse of 7 years from date of report to be missing.
For individuals, Joint accounts(not survivor,if issued by survivor,pass the cheque), partnership-Death of individual/partner- Payment of the cheque to be stopped
For Trust, Company, POA-Death of Trustee, Director, Agent-Pass the cheque.
In joint account, Partnership account, any person, partner can give stop payment notice, but revocation to be done by all.
E or S, death of one amount to be paid to survivor.
In joint operation account, if any one dies then amount will be paid to legal heirs of the deceased plus survivor.
In former or survivor only former has got all the rights, survivor can’t give stop payment nor withd be signed by both.
In case of locker operated jointly, if any person dies then access will be given to survivors along with nominee. In case of E OR S, then articles will be taken by the survivor.
Banks will issue notice for operation or surrender if Locker is not operated for one year in high risk accounts Locker is not operated for three years for medium risk accounts.
Break open of lockers to be done in front of the Branch officials, locker hirer, and two independent witnesses.
Premature or closure of deposit accounts, nominations to be signed by all joint account holders-Note-Premature can be done if demanded by survivor provided the authorisation was given at the time of account opening by the joint account holders for premature closure if any one dies.
In HUF Senior male coparcener is Karta.
A blind person can open a current account but an illiterate cannot open a current account.
Inland bills-Drawn in India, Payable in India by a foreigner or resident, payable abroad by an Indian.
Foreign bill other than the above.
A bill presented on 15/05/2008 and accepted on 16/05/2008.Due date will be 2 months from the date of presentment. Due date?
Even though 2 months presentment is given only accepted date to be taken into account.
2 months from 16/05/2008 -16/07/2008 Add 3 days grace- 19/07/2008 (3rd day)
If the due date happens to be a holiday then the bill will be paid on previous or preceding working date
Issue of DD without indemnity/no payment advice-Rs 5000
Partnership firm (Members) - Minimum 2, Maximum 10 for Banking Business and 20 for others.
PVT Ltd CO (Members) - Min 2 Maximum 50.
Public Ltd Co (Members) - Min 7 Maximum Unlimited
Certificate of Commencement of Business is required only for Public Ltd Co.
Ultra vires – Beyond the powers of the company.