Thursday, August 4, 2016

Dishonour of cheques

Banks were earlier advised that, if in a financial, year four cheques of Rs. 1 cr and above were dishonored in an account for insufficient funds, no fresh cheque book should be issued. The bank could also consider closing the current account at its discretion.

It has now been left to the discretion of the banks to determine their response to dishonour of cheques. Banks should put in place their own appropriate policy in this regard.
Based on RBI circular dated 4/8/16. For further details please refer ……………. Poppy