Tuesday, July 26, 2011

Banks shall provide specific reason for rejection of cheques

The Reserve Bank of India has made it necessary for the banks to mention a clear reason in case a cheque is dishonored or it is returned.

In a statement the Central Bank said "Certain instances of banks not signing the cheque return memos stating that the memos are computer generated and therefore no signature is necessary, have been brought to our notice."

The returned cheque must have a signed slip with a valid reason because of which payment has been denied.

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