Legal Question in Banking Law in India
I have written an account payee cheque and it got rejected, reason mismatch of amount in words and figures. Suppose the cheque was for Rs. 123, I have written (One Two Three) in words rather than writing One Hundered Twenty Three. Is it wrong way of writing a cheque? In US they accept this without any problem.
Asked on 2/03/11, 5:33 am
1 Answer from Attorneys
J. Radhakrishnan
independent Practice
The bank is in order in returning the cheque. Forget the practice of what u say in U.S. In india, the law is if the figure in words and number differ, the banker can take the amount expressed in words. It is not proper to describe the one hundred and twenty three rupees as one two three rupees.
Answered on 2/03/11, 7:25 am
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