Knowledge Base Issues
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...
Are "account payee only" cheques transferable?
No. When a cheque is crossed not negotiable or account payee only, the cheque must be deposited into the account of the payee.
Does the bank have the right to request that I close my account with them?
You should enquire from your bank the reason(s) for this. However, banks have the right to close any account that is not satisfactorily operated. In addition, the conduct of the account must be in...
Can my wife operate my current account when I am overseas?
Yes, provided you issue a mandate 1 to your bank and your bank approves. In some instances, only short term appointments are allowed, e.g., for six (6) months or less. The mandate must clearly...