Legal Question in Banking Law in India

I have given cheque to settle ICICI bank credit card due. I have given cheque also from ICICI bank. The bank is saying now the cheque is returned because of insufficient balance.

But in my savig Bank account statement , There is no entry (mention) of cheque return.

Is there any guideline from RBI if cheque is returned there should be entry for cheque return in account statement (as entry is mentioned in account statement if cheque is cleared)?


Asked on 10/23/11, 10:42 pm

2 Answers from Attorneys
J. Radhakrishnan independent Practice

there won't be any entry in the drawee bank account of the return of cheque drawn on the account. it will only be in the payee's account. No question of RBI guideline in respect of these matters. Bank account will contain debit and credit entries only. since cheque in an account returned is neither debit or credit, it cannot find a place in the depositor's i.e. drawer's account.If cheque is cleared, it is debited and not when it is returned.

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Answered on 10/24/11, 5:15 am
Eashwar Prasad Gururaj Joshi & Co.,

Even though if there is no entry in your account statement w.r.t dishonour of the cheque, you may get the information from your banker and in case if you have maintained requisite amount to clear the cheque and if you have proof of handing over the cheque well in advance, you can play safe.

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Answered on 10/26/11, 12:39 am


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