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Self Cheque - who has enchased?

Joy (Advocate) (90 Points)

26 November 2009

Dear All,

I have an interesting query and would appreciate if anyone could throw some light on it.

There is a savings account of a particular wing of the State Government Education Department with a scheduled bank of India. The account can be operated only jointly by two signatories. A particular cheque of a considerably high amount was drawn to 'SELF', and signed by both the signatories, both on the face of the cheque, as well as at the back of the cheque.

Ques:

1. Whom will the bank give the cash to - i.e. which of the two signatories will get the cash.

2. If the cheque has already been enchased, can it be determined which one of the signatories had taken the cash from the bank?

3. Is there any RBI guideline/circular regarding encashing of cheques which have two or more joint signatories?

Thanks.

Joy

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6 Replies

Suresh (Service) (91 Points)
Replied 26 November 2009

Joy, the banker will verify signature from the both the signatories on the face of the cheque as well as on the reverse side of cheque. The banker is authorised to pay cash to any person who present the cheque by taking his signature in their presence.

Hope this clears your doubts, Regards*Suresh

Joy (Advocate) (90 Points)
Replied 26 November 2009

Dear Suresh,

Thanks for the reply. Although it is not disputed that the banker may pay the cash to any person who presents the duly signed cheque, however, the question is - can it be determined who among the two signatories, has taken the cash?

Tnx.

Suresh (Service) (91 Points)
Replied 26 November 2009

yes, eventhough if the cheque is signed by both signatories, before paying the cash the banker will be taking the signature of the person who actually withdraws the cash, either it may be signatory or a third person. Tnx Suresh

Rajeev Kumar (Learner) (51 Points)
Replied 18 December 2009

Hi Joy,

I agree with Suresh, but it’s difficult to recognize the person who withdrawn the cash beacuse any one signed the fake signature on cheque when receiving the cash from bank. As you said, the cheque amount was high then its possibility that Bank has the PAN card copy of that person because if someone (exclude bank account holder) withdraw the cash more than 50k from the bank then he/she has to submit his/her PAN card copy with bank.

Ragards,

Rajeev

Ansari (ca final) (444 Points)
Replied 20 December 2009

Originally posted by : Rajeev Kumar
	Hi Joy, I agree with Suresh, but it’s difficult to recognize the person who withdrawn the cash beacuse any one signed the fake signature on cheque when receiving the cash from bank. As you said, the cheque amount was high then its possibility that Bank has the PAN card copy of that person because if someone (exclude bank account holder) withdraw the cash more than 50k from the bank then he/she has to submit his/her PAN card copy with bank. Ragards, Rajeev