Legal Question in Banking Law in India

Chq was provided by custmr to random person who calld him. Then the chq was chemically altered nd paymnt Was made by bank as chq was appeared normal. Its nt aparent to be altered with naked eyes.

In this scenario, does banker is laiable for loss?

Is there any provision by RBI that if cash payment abv 50000 thn id is required.?

Chq WS a bearer chq


Asked on 5/17/16, 8:06 pm

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

18.05.2016

Dear Sir / Madam,

The responsibility of the bearer cheque vests in the issuer / account holder. Whether the Bank remains liable for the loss depends on the outcome of the Police Investigation Report. It is mandated that cash payments above Rs. 50,000/- (Rupees Fifty Thousand Only) should be based on verification of the payee's ID.

Regards,

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Answered on 5/17/16, 8:42 pm

1) No. Bearer cheque is always a bearer cheque.

2) PAN card us a must.

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Answered on 5/19/16, 5:39 am


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