BANKING AFFAIRS

Detailed explanation-1: -As you are aware, in January 1992, banks were advised to implement the recommendation of the Goiporia Committee that dishonoured instruments are returned / despatched to the customer promptly without delay, in any case within 24 hours (Ref.

Detailed explanation-2: -The dishounoured instruments are required to be returned / dispatched to the customer promptly without any delay, in any case within 24 hours of dishonour.

Detailed explanation-3: -(iii) Cheques dishonoured for want of funds in respect of all accounts should be returned along with a memo indicating therein the reason for dishonour as “insufficient funds."

Detailed explanation-4: -If a cheque is dishonoured The holder or payee can resubmit the cheque within three months of the date on it, if he believes it will be honoured the second time. However, if the cheque issuer fails to make a payment, then the payee has the right to prosecute the drawer legally.