skumar (abc) 15 February 2015

Dishonour of cheques issued in my own name

Dear Fellow members,

I am a D.D.O in Govt's office. I have been authorized to sign cheques and do all bank transactions of my office. My sample signatures are already with the bank. We are getting satisfactory services from a particular bank from past 7 years. But suddenly when I submitted a cheque in bank in my own name signed by me (being DDO of office) the bank denied to honour the cheque by saying that "you cannot issue cheque in your own name, if you want then you have to attach a cover letter with cheque and explain for what reason this amount you want to transfer in your account from office account".

I do not find this justified as it means that bank doubts my integrity and it is not possible for me to give explanation to bank every time. I asked the bank to give me in written but they denied. Even the counter-foil of the cheque submission slip is not properly signed/stamped by the bank.

Is this justified at the level of bank to ask me for reason of transfer of amount from my office account to my personal account ? If not then what action should I take?

What action should I take as the bank is not even providing properly signed/stamped cheque submission counter foil ?

regards

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(Guest)

You have not stated on account of what claim you have issued cheque in your own name.

However, the bank maintain specimen signatures of more than one authorised signatories from the concerned office to honour the cheques issued for and on behalf of the Government in the absence of one or the other signatory. It is in your own interest to get the cheque issued for your personal claims with the signature of the other authorised signatory. Otherwise, one day, even on some other doubtful transaction the instances of issue of cheques to your personal account can become troublesome for you.

Anyway, in the instant case, you may ask the bank to return cheque as dishonoured along with the objection memo. On receipt cancel the cheque, get another cheque issued in lieu of cancelled cheque in your gfavour.

There will be no use of challenging the bank on this count as the bank is well within its right to withhold any payment as a measure to avoid frudulent transactions.