Knowledge Base Issues

What is clearing day-hold?
Clearing day-hold refers to the time taken for funds from the cheques which have been cleared to be credited into the payee's account. The time taken would depend on the type of cheque deposited,...
How does the bank verify my signature on a cheque? Can I add additional signer to my current account? How do I change my signature?
When you open a current account, your bank will require your specimen signature. The bank will compare your signature on the cheque issued by you against this specimen signature. If the signature...
What is the difference between forged and unauthorised signature?
Forgery is the production of a replica to as close as possible to the actual object with the intention of deceiving people into accepting it as the original. Where the forgery consists of the...
Why do banks charge customers for encashing account payee cheques?
To minimise the risk of loss from open cheques due to robbery, theft and fraud, banks have issued pre-printed account payee cheques. Notwithstanding this, some banks may allow the accountholder...
What is a fictitious payee? What is a non-existing payee? What is the difference between a fictitious payee and a non-existing payee?
A cheque may be drawn payable to a named payee whom does not in fact exist. Section 7(3) Bills of Exchange states that: where the payee is a fictitious or non-existing person the bill may be...

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