Query on Cheque
This query is : Resolved
18 December 2024
Sir,
If in a cheque Payee;s name is wrongly mentioned does it invalidate the cheque.
One person told me that as per RBI circular bank only verify Account No and IFSC Code before accepting payment.
Is it true ? I have Doubt
Regards
Abhijit
If in a cheque Payee;s name is wrongly mentioned does it invalidate the cheque.
One person told me that as per RBI circular bank only verify Account No and IFSC Code before accepting payment.
Is it true ? I have Doubt
Regards
Abhijit
18 December 2024
In many cases, if the misspelling is minor (e.g., one letter off), banks may still process the cheque without issue. it is up to the discretion of the bank whether to accept or reject a cheque with a misspelled name. Factors that influence this decision include the amount of the cheque and the banking history of the account holder. For smaller amounts, banks may be more lenient. If there is a significant discrepancy or if the cheque is for a large sum, banks might require additional verification. This could involve checking identification or related documents to confirm that the intended payee is indeed associated with the account into which the cheque is being deposited.
The Reserve Bank of India (RBI) has issued guidelines emphasizing that banks are primarily required to verify only the account number and IFSC code when processing electronic fund transfers. When initiating a fund transfer, customers must provide the beneficiary's account number and IFSC code. The system checks these details for accuracy before processing the transaction. If the account number matches but the name does not, the transaction can still proceed, as the verification process relies solely on the account number & IFSC code.
The Reserve Bank of India (RBI) has issued guidelines emphasizing that banks are primarily required to verify only the account number and IFSC code when processing electronic fund transfers. When initiating a fund transfer, customers must provide the beneficiary's account number and IFSC code. The system checks these details for accuracy before processing the transaction. If the account number matches but the name does not, the transaction can still proceed, as the verification process relies solely on the account number & IFSC code.
19 December 2024
Sir
Thanks a lot.
It absolutely clear my doubt.
Regards
Abhijit
Thanks a lot.
It absolutely clear my doubt.
Regards
Abhijit
19 December 2024
You are welcome.
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