Cheque returns

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2016 What is the time frame for banks to return back cheques to its customer and legal implications if any. Can the bank recover its due back where wrongly credit has been made to customer for returned cheque

Unnikrishnan B

Unnikrishnan B (Expert)
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24 September 2016 Sir,
In your Query you have not mentioned which cheque is thus so I am giving you a general reply
The time period for local cheques is Max 2 days and if it is outstation cheques it is 7 days and the outstation cheque pertains to major cities it is 10 days

If wrong credit given the bank can recover the amount it was decided the case law United Bank if India vs Ali Hassan & Co.(AIR 1978 Calcutta169)

Unnikrishnan B

Unnikrishnan B (Expert)
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24 September 2016 Just follow the natural justice if money is credited is not belong to you then one should return back the money.in your case although the cheque amount credited to your account afterwards it was known that the cheque was actually returned .then the customer know that the drawer has returned it .so give back the amount
Just follow the natural justice

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