Samhita Dutta (Sr. Technical Associate) 25 July 2011

Demanding Blank Cheque

Hi,

I have applied for a home loan from one of the financial instituitions (DHFL) which is asking me for blank checques as security.

Can a bank or a financial organization ask its customers to give them blank cheque without even a date on it? Is the demand of DHFL legal.

Please suggest.

adv. rajeev ( rajoo ) (practicing advocate) 25 July 2011

Yes they can demand, but it is your duty to get the letter from the bank authroities regarding receipt of blank cheques rrom you as secutiy