Chq dishnoured with "Account Dormant" memo
Vikram Patil
(Querist) 20 September 2016
This query is : Resolved
Dear experts, If the cheque is returned by bank with the memo statiing "Account Dormant" only. Can this attract Section 138 of NI Act ? Any relevant case law ?
Thank you.
adv.bharat @ PUNE
(Expert) 20 September 2016
Vikram patil it amount to offence.
There are 29 reasons due to such cheque is return. Any of the reason amount to action under section 138.
U need to hire local counsel for case law.
If u like my suggestion then give THANK on my profile.
Advocate Bhartesh goyal
(Expert) 20 September 2016
Cheque returns due to any reason comes under the purview of sec 138 of N.I.Act.we don't provide citations.
Kumar Doab
(Expert) 20 September 2016
You can benefit from the advise of experts.
Approach your counsel.
Ms.Usha Kapoor
(Expert) 21 September 2016
Dear Client,
Why a cheque bounces on the account becoming dormant for various reasons. Dormant means inoperative or inactive.For the following among other reasons the account becomes dormant.
hare
Most of us have saving bank account. At times we end up having many bank accounts. It’s not easy to keep track of multiple savings bank accounts, in fact it breeds confusion. But ignoring a bank account for a long time can cost you time, money or both. In this article we will explain about bank accounts which are not operated for 2 years, a.k.a dormant accounts, why bank makes them dormant, how to re-activate them.
What is inactive and dormant bank account?
If there have been no transactions in your savings or current bank account, credit or debit other than interest payments credited by your bank or debiting of service charges, for more than 12 months, the account becomes inactive. And if the period exceeds 24 months the account is declared dormant or inoperative.
What kind of transactions keep the saving bank account active?
Any credit or debit transactions done by a Customer in his Account, called as Customer induced transactions, keeps the account active. Some of the transactions are :
Transactions through cheque.
Cash or cheque deposit.
Withdrawal or deposit through ATM.
Transaction through internet
Transaction by standing instruction, ECS and EFT.
Inward/Outward bill.
Mandate for crediting interest earned on Fixed deposit to Savings Bank Account
Even mandate for crediting interest from FD to Saving Bank Account is a Customer induced transaction
If you frequently do debit credit transactions and withdraw money deposited through debit card or issue cheques to your clients,customers or friends etc and Keeping minimum credit valance as per the rules of Bank and and carry internet banking transactions as well etc you can make the account active again. Banks will give prior notice before your account turns inactive. In your case did your bank issue a notice of account becoming Dormant shortly.?
H.M.Patnaik
(Expert) 21 September 2016
No bank issues notice reg. Accounts turning Inoperative or Dormant.These days we get SMS if the Account balance falls below the Minimum Balance.
Kumar Doab
(Expert) 21 September 2016
RBI guidelines:
5.5 Unclaimed Deposits and Inoperative/ Dormant Accounts
In view of the increase in the amount of unclaimed deposits with banks year after year and the inherent risk associated with such deposits, it is felt that banks should play a more pro-active role in finding the whereabouts of the account holders whose accounts have remained inoperative. Moreover, there is a feeling that banks are undeservedly enjoying the unclaimed deposits, while paying no interest on it.
(i) The banks may approach the customers and inform them in writing that there has been no operation in their accounts and ascertain the reasons for the same.
https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=7366#ud
Bank can not run away form its own responsibility.
Raj Kumar Makkad
(Expert) 22 September 2016
I do endorse the advice given by experts.
Rajendra K Goyal
(Expert) 22 September 2016
Bank should not return the cheque if signed by the account holder due to the fact that the account has turned dormant. It is responsibility of the Banker to honor customer mandate. Making an account regular / operative on receipt of cheque for payment is internal process of Bank and customer should not suffer.
If no information received from Bank prior to turning account dormant, Bank can be charged of wrongful dishonour.
Vikram Patil
(Querist) 02 October 2016
Thank you all experts.
