Cheque stop payment

Amar Jadhav (Querist) 07 August 2015 This query is : Resolved
Pls anyone guide me regarding what is the validity of cheque stop payment instructions. whether it is perpetual in nature or is in existence for one time only. In my case before Consumer Forum the Bank has taken stand that the stop payment instructions is not in perpetuity and it it is exhausted once it is followed. Whether it is correct and what are the RBI guidelines in regards to it. Pls inform

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rajagopal.s (Expert) 07 August 2015
hi
Stop payments are in perpetuity.

Guest (Expert) 07 August 2015
Mr. Amar,

What do you mean by perpetutiy with specific reference to the stop payment instructions, while the term "perpetuity" is used mostly with reference to the transfer of property on lease basis.

Please discuss the real problem instead of asking academic question.

Amar Jadhav (Querist) 07 August 2015
Sir I mean whether the instructions of cheque stop cheque payment given to bank is for only one transaction or is permanant. Bank has taken defence that it is not perpetual and it is no more when once it is complied with. Is it correct?
. Pls guide

Guest (Expert) 07 August 2015
You are still far away from discussion of the real problem. Has the same cheque with the stop payment instruction been paid on subsequent presentation in the bank or not?

Rajendra K Goyal (Expert) 08 August 2015
The payment stopped for a particular cheuqe no. is stopped for ever and the cheque would be returned whenever presented whether once or more than once.

Amar Jadhav (Querist) 09 August 2015
Dhingra Sir, my case is I hv given stop payment instruction in regards to a specific cheque to bank which was acknowledged and duly followed by bank. Accordingly the cheque was returned back with remark 'payment stopped by drawer'. And stop payment charges were deducted from my account. Now the same cheque was presented again after two months but this time bank without following my instruction return it with remark 'funds insufficient'. Bank hv taken defence or their stand is that stop payment instructions are not perpetual and can b executed for one transaction only. It is as per their rule/procedure/policy. Bank hv not deducted any charges from my account. Further the said cheque being cross cheque it was returned across the counter wth memo in drawee name. According to me it is deficiency in service provided by bank bcz though my instruction being in existence and I never withdraw it hw cld bank do this. It is done in collusion wth drawee. Pls guide me

Dr J C Vashista (Expert) 09 August 2015
Stop payment was for one transaction and not for subsequent transaction(s) despite the fact same cheque is presented again within its validity.
Stop using SMS language also since it is not presentable before the experts rendering you FREE OF COST service.

Cheque stop payment

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