Thursday, September 11, 2008

Post Dated Cheque:

When a cheque that carries a date later than the date on which it was written by the drawer then the cheque is called post dated cheque. A post dated cheque is a irregular bill of exchange. Therefore, the cheque can not make payment by the bank until the cheque is presented on the particular date or after to the paying bank.

Stale Cheque:

When a cheque is issued mentioning a date but presented at the counter of paying bank after a certain period i.e after the period of six months for payment then the instrument is called as state cheque. A bank can not make payment such cheque as it is deemed an irregular Bill of Exchange. Therefore, a bank may refuse to honor it unless its drawer reconfirms it payment either by inserting a new payment date with his valid signature or by issuing a new cheque.

Wednesday, September 10, 2008

Dormant Account :

Generally when a bank account has no transaction for a long period of time then the said account kept in different status called as dormant. If there is no activity in a current account for one year or in a savings account there is no activity for two years then the status of account defined as dormant. A banker has an obligation to intimate customer through a letter mentioning the status of the account with a request to regularize the same by depositing and or withdrawing fund from the respective account.

To activate the dormant account the customer must provide a written request addressed to the branch manager to make the account as regular for transaction.