Bank draft bouncing


Student Others

I am in the process of selling a property at South  Delhi for which the payment is going to be in crores - mid 20s . How can I be sure that the bank draft / drafts given by the buyer would not bounce . Also is it possible ,  he / she can call  the bank on INTERNET  , not to clear the drafts ( right after I sign the property papers giving him the title ).  

 
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KVO Merau Kutchh

bank draft, or banker's cheque is a cheque that a bank provides for a customer drawn by the bank itself. The bank guarantees the draft amount because it has been already paid for it.

The draft contains the payee’s name. The payee is the person who receives the money from the bank itself.

So, unless the draft itself is any fraud or fake, the issueing bank would not return it unpaid.

Yes, it can be cancelled when presented by the person who prepared it, but only when the original draft is presented alongwith cancellation request.

In case the draft in itself is fake, the transaction can be cancelled by court order.

Good Luck.

 
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Student Others

Thank you Dhirajlalji for your reply . Your efforts and good work you do  in helping the members of this form are examplery . Can the buyer call for holding the draft through internet.  In that case the bank issuing the draft  may take the stand that they had NO CONTROL over the matter and let the head office decide , putting the seller at risk .                                                 

 
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KVO Merau Kutchh

"Can the buyer call for holding the draft through internet.  In that case the bank issuing the draft  may take the stand that they had NO CONTROL over the matter and let the head office decide , putting the seller at risk"

Generally NO.

1. The bank is bound to pay the amount to payee.

2. Only Original draft/bank cheque is required to be produced for cancellation.

3. In case of lost/theft.......... bank has to comply some conditions to repay the amount back, but the payment can be withheld for final verification.

4. Well, for final satisfaction, I would advise you to contact your bank branch manager and inform him about the transaction, and get information about all possible precautions to be taken in such case.

 
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Student Others

Thank you Sir.

 
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KVO Merau Kutchh

Most Welcome

 
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