What is a forged instrument? (Cheque/bill/Promissory note)
A negotiable instrument like a cheque, bill of exchange, or promissory note is called a forged instrument when forgery takes place in the signature of the drawer, the signature of the endorser, alteration in name of the payee, alteration in amount, alteration in date, etc. If the forged endorsement is a nullity, then it will…
Read article 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…
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Cheque bouncing and consequences of dishonour of Cheque explained
Although, there are several cheque bounce reasons to be considered such as incorrect date mentioned on the cheque, signature mismatch, mismatch of the amount and figures, damaged cheque, overwriting of the cheque, etc. The principal reason for a cheque bounce is insufficient funds. If a cheque is dishonoured because of insufficient funds in the payer’s…
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…
Maintenance 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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