Can a bank refuse to send a cheque for clearing if i have mentioned my initials alongwith surname

Querist : Anonymous (Querist) 02 November 2010 This query is : Resolved
My mother Mrs. Reena Ashok Salian has been operating a savings account with a multinational bank for the last 3 years. She has been depositing cheques in the said account very regularly either in the name of REENA ASHOK SALIAN or R.A. SALIAN. However recently one cheque bearing the name as "R.A.SALIAN" has been returned by the bank thru courier after a week of depositing citing the reason as "Name differs" due to which the cheques issued by my mother against the said cheque has been bounced. Is there any rule wherein the full name has to be mentioned in the cheque. or any judgements passed in such matters. Advice is solicited

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B K Raghavendra Rao (Expert) 02 November 2010
The opening of an account with a bank is a contract between the individual and the bank wherein the banking transaction is to take place in the name of the account holder. Now, REENA ASHOK SALIAN and R. A. SALIAN prima facie are different names and the bank has rightly refused to accept the cheque. Issue an affidavit to the bank stating that REENA ASHOK SALIAN and R. A. SALIAN are one and the same person and also issue a letter to the effect that bank records be changed accordingly.

R.Ramachandran (Expert) 02 November 2010
I agree with the views of Mr.Raghavendra Rao.

Raj Kumar Makkad (Expert) 02 November 2010
agreed

s.subramanian (Expert) 02 November 2010
Yes. I agree with Mr.Rao.

Arun Kumar Bhagat (Expert) 02 November 2010
Bank is right. Better sort out the problem with the Bank. Generally Bank asks for affidavit wherein it has to declared that both the person are same not two different persons.

Parthasarathi Loganathan (Expert) 02 November 2010
Collecting Banks never get protection of the NI Act if the name differs even in spelling or initials. I would suggest you to retain your original correct name in the bank records and request the drawer the cheque to take care while drawing cheques in your favour. Else, you can get bearer cheques issued and get it encashed over counter upto Rs.50000/* by indicating your PAN No. This is the simple solution which is conventionally accepted in practice by all banks.

Devajyoti Barman (Expert) 02 November 2010
Yes

ashish lal (Expert) 02 November 2010
yes

adv. rajeev ( rajoo ) (Expert) 02 November 2010
in the past banks have accepted the cheques deposited as Reena Ashok Saliyan and R.A.Saliyan. To avoid the future consequences it is better to deposit the cheques in only one name. Bank has rightly done it.