Protection available to Collecting banker and responsibility of collecting banker
A banker collects a cheque for his customer in the capacity of an “agent for collection”, the banker collects the cheque on behalf of his customer, which also when presented to him. If a customer gives an open cheque i.e. a cheque uncrossed, the banker has to cross the cheque before it is sent for…
Read article Meaning of valid endorsement and endorsement of a cheque
Section 15 of NI Acts 1881 defines endorsement (Indorsement) as under When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a…
Read article Rules for payment of a cheque
Under the Negotiable Instrument Act a cheque is a bill of exchange it is an order on the drawee bank to pay the amount specified in it to the payee or the bearer until and unless the amount mentioned in the cheque is paid, the disposition of property therein will not take place. Section 19…
Read articleMaintenance of Client Identity Records under PMLA: A Banking Compliance Perspective
Maintaining client identity records is a core compliance obligation for banks and financial institutions under the Prevention of Money Laundering Act (PMLA). This requirement is designed to promote transparency, accountability, and support for law enforcement in the fight against money laundering and financial crimes. What Records Must Be Maintained Banks and financial institutions must maintain…
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Verification of Client Identity under PMLA: A Banking Perspective
In today’s banking environment, verifying client identity under the Prevention of Money Laundering Act (PMLA) is more than a regulatory requirement—it is a cornerstone of financial integrity. By ensuring robust identity verification and record-keeping, banks not only comply with the law but also safeguard themselves against criminal misuse, build customer trust, and strengthen the resilience…
Furnishing Information to FIU-IND under PMLA: Obligations for Reporting Entities
Under the Prevention of Money Laundering Act (PMLA), reporting entities are required to furnish transaction and client-related information to the Director, Financial Intelligence Unit – India (FIU-IND), through procedures defined in consultation with their regulators. Typically, this process is handled via the institution’s Principal Officer, who acts as the nodal point for compliance. Strict timelines…
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