10 June 2009
I have issued one icici bank cheque to citi bank credit card. icici bank dishonoured the cheque as the amount written in the figure (Numeric) was corrected but the amount written in the word form was correct one. I forgot to sign beside the correction. Otherwise It was an a/c payee cheque and there was sufficient fund in my a/c. Bank charged Rs.55/- stating cqrque return charge due to alteration of figure. Can any bank dishnour an a/c payee cheque with such a little mistake? What is the RBI norms relating to this problem ?
11 June 2009
Hi, If there is a difference in the amount return in numeric & in words then the bank are generally returning the cheques. However in my opinion & as per Negotiable Instrument Act,if there is ambuguity in the amount written in words & numeric, then the amount written in words will prevail. As in your case the amount written in words are clear bank should not have returned your cheque. You can file an grivance application with the icici bank and surely your bank charges will be deleted alternatively file an application in the consumer forum, you will definately win.
CAclubindia
