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Harsha Vardhana R (Project Manager)     17 December 2015

Encashing a cheque of $10 in Indian banks?

Dear Experts,

 

As a token gift for my participation for one of the online surveys, I have been issued a cheque of $10. I believe I fill in a Indemnity-Bond to encash it in Indian banks. One of the leading private banks (I have an account) refused to process it as they have a policy of accepting only cheques of $100 and above! 

 

I have an account in a nationalized bank (in India) too. Does it also have any minimum amount? I am ready to pay reasonable proessing fee too. Please clarify.

 

Regards,

Harsha



Learning

 8 Replies

siddhartha sinha   17 December 2015

All govt banks may not have same policy. But banks charge a fixed processing fees irrespective of amount hence you need to do a cost-benefit analysis.
1 Like

Adv. Yogen Kakade (+ 91 9225510883)     18 December 2015

Hi,

Contact the regional office of your bank.. submit the complaint with them.

1 Like

Harsha Vardhana R (Project Manager)     18 December 2015

Thanks for the replies. I would contact a higher authority of the both the banks

Punit Gupta (Owner)     19 December 2015

Dear Harsha Vardhana R,

Referring to the information provided,

There is no such Minimum/Maximum capping of amount for any instrument to be accepted for clearing (Local/Outstation/International).

You can deposit it with any coomercial bank you have account with.

If not so, please raise a complaint to the concerned Nodal officer of the bank.

1 Like

Harsha Vardhana R (Project Manager)     19 December 2015

Thank you, Punit! Your clarification would help me in confidently pursuing my request. 

siddhartha sinha   20 December 2015

The learned expert above is factually wrong .Some banks can impose this limit depending on savings/current account type nothing wrong in it. Its a matter of their policy.Even rbi permits this. But provided it is informed/displayed. It will probably be on their website.
1 Like

T. Kalaiselvan, Advocate (Advocate)     26 December 2015

The decision by the bank in your case is really a pity.  The bank cannot refuse the acceptance especially if they charge processing fee. You may escalate the matter with the higher authority of the bank including a petition to the banking ombudsman for an unilateral decision by the bank manager.

Different banks adopt different procedures but no bank will refuse to accept the cheque for this reasons i.e., lower denomination. You may even contemplate to approach consumer forum for the bank's refusal to accept the deposit of cheque, ask the bank to give it in writing quoting their relevant rule in this regard. 

1 Like

Harsha Vardhana R (Project Manager)     26 December 2015

Thank you for giving a legal view. I would pursue the higher authorities of the bank. Also I can approach RBI authorities as that helped me in an earlier RTGS issue.

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