Question

When is banker justified in refusing payment of a cheque?

Answer 1

There are many reasons for a banker to refuse a cheque payment. The reasons are listed below:

1. Due to demise of any customer.

2. When the customer has countermanded payment.

3. Due to closure of the account.

4. If the banker finds out any defect in the account title.

5. If the banker finds any defect in the signature or if the signatures do not match.

6. When the customer loses the instrument.

7. When the customer becomes insane,so in this type of a case its original paying authority ceases to exist.

8. When the banker receives notice of assignment from the customer about his credit balance or in simple words when the customers balance is low.