Tagged Knowledge Base
Who is eligible to open a current account in Malaysia? Where can I open a current account in Malaysia?
Different banks have different criteria for opening a current account. Generally, banks would only consider the application if the applicant is: 18 years old or above not a bankrupt of sound mind...
Under what circumstances can a current account be closed?
An account can be closed under the following circumstances: On accountholder's request Accountholder must provide a written request and return any unused cheque leaves for cancellation On...
What is the cheque clearing process in Malaysia? How does the cheque clearing process work? How long does it take for a cheque to clear?
Cheque Clearing Process When you deposit a cheque into your account, your bank which is the collecting bank will send it to specific clearing centres to be sorted and dispatched to the drawee bank...
What is a post-dated cheque? Can I deposit or cash a post-dated cheque? Is post-dating a cheque illegal?
A post-dated cheque is a cheque issued with a written date in the future or dated after the date of issue. Section 13 (2) of Bills of Exchange Act 1949 (Act 204) A bill is not invalid by reason...
If a cheque is made payable to a company, e.g., ABC Sdn. Bhd or 'bearer', can the 'bearer' of the cheque encash it over the counter?
No. Generally banks will require you to deposit it into the account of ABC Sdn. Bhd. to reduce the incidence of fraud.
Can a cheque be made payable to two parties i.e. A or B?
Yes. A cheque can be made payable to either A or B.
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.
Can I, as the issuer, alter or modify any detail on a cheque and counter-sign in full next to the alteration?
No. Bank Negara Malaysia (BNM) implemented the new Cheque Truncation Conversion System (CTCS) 1 replacing the existing SPICK clearing system nationwide from June 1, 2008. One of the key...
Is an undated cheque valid? Can I cash an undated cheque?
Section 4(a) Bills of Exchange Act 1949 (Act 204) provides that a bill is not invalid by reason that it is not dated. Where the date has been omitted, it is generally considered that a holder...