BANKING AFFAIRS

Detailed explanation-1: -What does the cheque bounce reason “17-Alteration requires drawer’s authentication” mean? A cheque is valid for payment provided there is no alterations in the cheque to change the intention of the drawer . Now if there’s any alteration in the face of the cheque how is to determine the intention of the drawer .

Detailed explanation-2: -Alteration Requires Drawer’s Signature. The cheque that has been paid in appears to have been altered and therefore cannot be paid as the cheque should have been countersigned by the issuer.

Detailed explanation-3: -No changes / corrections can be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), fresh cheque leaves should be used by customers.

Detailed explanation-4: -All material alterations must have the drawer’s approval with his full signature where the alterations are made. Without the permission and consent of the drawer, a blank cheque cannot be enforced.

Detailed explanation-5: -When the cheque dishonour is due to technical issues like overwriting or signature mismatch, you must make an effort to immediately rectify the issue. Ideally, you can agree to do a NEFT / RTGS transfer to your client so that business relations are maintained.