Legal Question in Banking Law in India
Customer A had issued Demand Draft in Favour of ABC. ABC did not present the DD and now the DD has expired and its lying in unpaid DD account for 3 years. Can the bank move this amount from unclaimed/unpaid DD to profit account after 3 years.
What if it was not a bank customer but a walk in customer?
2 Answers from Attorneys
The bank has to keep it in suspense account.
q4.04.2014
Dear Sir / Madam,
No ... not at all ... no excuses here. The bank is supposed to contact the drawer of the DD informing him that the proceeds have not been encashed by the drawee and the Bakk is legally bound to credit back the amount (less charges) to the drawer.
With the introduction of KYC norms, all banks are required to take the full identity of the drawer with his / her contact number and address for communication.
Regards,
.
Regards,
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