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Responsibilities of paying Bank
What is the primary duty of a paying bank when a cheque is presented for payment?
The paying bank must verify the genuineness of the cheque, ensure the drawer's signature matches, check that funds are sufficient, and pay the correct payee in due course.
What is the paying bank's responsibility when a cheque is presented after banking hours?
Bank may dishonour it; payment next working day is standard.
Under Section 31 of the Negotiable Instruments Act, what obligation does the drawee bank have?
Under Section 31, the drawee bank is bound to pay a cheque drawn on it if the drawer has sufficient funds, and it is liable to compensate the drawer for any loss caused by wrongful dishonour.
What is the paying bank's duty when a cheque is presented with an irregular date?
Bank should return the cheque citing 'date required' or 'date irregular'.
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