Legal Question in Banking Law in India

can we pay a bearer cheque in which in payee's name it is written as self or mr. x


Asked on 11/22/11, 11:21 pm

1 Answer from Attorneys
J. Radhakrishnan independent Practice

The word bearer is not scored out, the payment can be made to bearer. However the paying banker has to take precaution of getting the identity of the person who receives payment of the Cheque. I understand that with effect from 1st December 2011, RBI has ruled that payment across the counter should not be made to anybody other than the drawer if the amount of the cheque is more than Rs.20,000/- and it has to be encashed only through credit to the payee's account. Pl. cheque the recent circular from the RBI website.

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Answered on 11/28/11, 5:58 pm


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