Nepal Rastra Bank has introduced
stricter provisions for good-for-payment cheques. As per the circular
issued by the NRB, the provisions would go into effect from Shrawan 1.
The provision states that banks must inform the drawers of a cheque about insufficient funds in their account through email, phone or letter. However, if the cheque once returned is again dishonored for the same reason, the banks should initiate action against the issuer.
Likewise, the cheques drawn by banks and finance companies must put cheque writer on the front part of the cheque. On the cheque drawn by bank and finance institutions, there should be no cross stamp or any other sort of stamp of another institutions.
In case of electronic cheque clearance, the image must contain a digital stamp in black color clearly identifying the firm, company, institution or organization drawing the cheque on the back of the cheque.
Similarly, the directive states that, cheques drawn on the name of firm, company, organizations and offices must always be account payee. Until now bearer cheques were also drawn in such cases.
The directive also includes provisions on the size of the cheque, the language to be used on the cheque, the color of the cheque, stamp, among others.
Banks would not be obliged to cash cheques that are torn, overinked, overwritten or punched. Only one type of ink and one language should be used in the front part of the cheque.
Similarly, if there seem to be differences in the amount mentioned in words and number, the one written in words must be considered valid.
As per the ECC rule book, banks should not pay the cheques that do not stick to the prescribed size or follow the other directives.
src: sharesansar
The provision states that banks must inform the drawers of a cheque about insufficient funds in their account through email, phone or letter. However, if the cheque once returned is again dishonored for the same reason, the banks should initiate action against the issuer.
Likewise, the cheques drawn by banks and finance companies must put cheque writer on the front part of the cheque. On the cheque drawn by bank and finance institutions, there should be no cross stamp or any other sort of stamp of another institutions.
In case of electronic cheque clearance, the image must contain a digital stamp in black color clearly identifying the firm, company, institution or organization drawing the cheque on the back of the cheque.
Similarly, the directive states that, cheques drawn on the name of firm, company, organizations and offices must always be account payee. Until now bearer cheques were also drawn in such cases.
The directive also includes provisions on the size of the cheque, the language to be used on the cheque, the color of the cheque, stamp, among others.
Banks would not be obliged to cash cheques that are torn, overinked, overwritten or punched. Only one type of ink and one language should be used in the front part of the cheque.
Similarly, if there seem to be differences in the amount mentioned in words and number, the one written in words must be considered valid.
As per the ECC rule book, banks should not pay the cheques that do not stick to the prescribed size or follow the other directives.
src: sharesansar
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