Can an account payee cheque be endorsed to another person? If yes, how its done?
Thnx in advance!!
Faiz Ahmed ( Article Trainee) (1731 Points)
18 June 2010Can an account payee cheque be endorsed to another person? If yes, how its done?
Thnx in advance!!
Sharad Saini
(Student)
(286 Points)
Replied 18 June 2010
account payee cheque can't be endorsed..........
CA Yasaswy Sarma Veluri
(Chartered Accountant)
(605 Points)
Replied 18 June 2010
It cannot be done......
Reena Verma
(CA Finalist)
(417 Points)
Replied 24 June 2010
ACCORDING TO LAW AN A\C PAYEE CHEQUE CAN BE ENDORSED AS BEING A NEGOTIABLE INSTRUMENT BUT BANK DOESN'T ALLOW THIS AS IT WILL RESULT IN BREACH OF
1. BANKING REGULATIONS ACT
2. RBI ACT
THEREFORE, PRACTICALLY IT CANNOT BE ENDORSED TO ANY OTHER PERSON.
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