Self Cheque

the cheques are always self cum bearer unless crossed so bank is not at fault for payment.

But is there no provision or compulsion to put accont holders signature on both front and back of cheque??

Bank has to refund the money paid under cheque with forged signature of the drawer.  But you will have to prove that it was forged. Presume that the cheque was not crossed and hence payable to bearer.  Normally banks insist for the signature of the drawer, in the case of self cheques, on the reverse side of the cheque, for evidencing the receipt of the payment; but it is not compulsory as per banking law, since it was bearer cheque. 

As per banking law, if a dog is coming to the bank with a bag hanging at his neck containing a bearer cheque, the banker is justified if he puts the cheque amount by cash, inside the said bag, for the dog to take it to the owner. You know, the dog cannot sign on the reverse side of the cheque. If you feel it a tricky answer, please ignore it.  No expert will be happy to answer qeiries, if asked at gun point.  Hence my advice to the friend who raised the query, is to be patient. For legal remedy, there is no ready-made formula. Hence no body can give crystal clear answers as you demanded.  In the instant case, you have to speak with the bank, send lawyer notice and if necessary file complaint before Consumer Court. 

I am not an Advocate and hence not possible to offer a legal remedy. Nevertheless I opine that whether wriring singature on the revrse of Cheque, for drawal of cash,  is legally required or not it has become customary for Banks to insist on Receiver's signature on the Cheque. In the instant case, this customary practice is violated. Hence if you represent the matter to the higher authorities of Bank, I believe your grievence will  be solved. You may also consider approaching Banking Ombudsman

Friend, the onus of proving that  the signature were froged will be yours, banks to be extra careful and in justified manned do insist on signing in the back of the cheque but it is not a law, as far adopting any legal proceeding, i suggest that you you consider that , beacause it shall be a non yealding one , kindly speak to the bank employees and assertain ways in which they may help you  as suggested by MR. KV SUBBA RAO, if the amount is not large i suggest that you forget the issue and be careful in time to come.

Please take up the matter with the bank and obtain tips for help. If you are a good old a/c holder bank shall be inclined to retain you.

You can lodge a written complaint addressed to the Branch Manager and can escalate to the Nodal officer and MD. The onus of proving that your signatures are forged shall be on you. The bank follow many activities which are termed as banking practices and by the same the employee who has authorized the payment is under obligation to obtain signatures of the person collecting payment ( some employees even ask to put the name) on the reverse of the bank. The bank's are under CCTV surveillance and based on your complaint can conduct in house inquiry. The concerned employee shall face the heat for violating the banking practice of the bank and being lenient. If the bank issues a reprimand to the employee in writing, you can try and obtain copy under RTI. RBI has issued instructions which are on their website for being extra careful to prevent such happenings.

You can issue legal notice and peruse your complaint.

We have made enquiries with a nationalised bank and the bank officer has mentioned verbally:

The HO of the bank issues circulars to all branches on process/procedures/practices to be followed by all staff and as per that bank employee who has processed the cheque/passed the cheque and even cashier are required to obtain double signature on the reverse of the self cheque.

Under RTI you can obtain this circular.

If the branch where you have a/c is uncooperative you may use your resources and rapport and obtain clues from other branch and proceed to obtain copies.

Once you have lodged complaint with BM/Nodal Officer/MD, the bank shall be under obligation to initiate enquiry in line with their circulars to all branches on process/procedures/practices and you are within your rights to obtain the copies of all material evidence including the letters/reprimands issued by the bank to its staff in pursuance to your complaint and it shall be useful for your defense.

You are accountable and responsible for loosing cheque book and not reporting it to the bank.

Bank staff compares the signatures on the impression of naked eye e.g. flow etc.

CHEQUES ARE NEGOTIABLE INSTRUMENTS AND IF BEARER,CAN BE PAID BY CASHIER TO ANY PERSON WHO IS PROVIDING SIGNATURE ON ITS BACK ,SIGNATURE ON SELF CHEQUES ON BACK IS INSISTED SOME TIME BY SOME BANKS AS A PRECAUTION AND THAT IS NOT A LEGAL REQUIRED.

BUT THIS ALL DOES NOT MEAN THAT A BANK CAN MAKE PAYMENT IF THE SIGNATURE ON THE CHEQUE BEING PAID IS FORGED AND IMPERSONATED BY SOMEONELSE PRTENDING TO BE A/C HOLDER.NORMALLY BANK SIGNATURE IS KNOWN EITHER TO BANK BECAUSE OF SPECIMEN RECORD OR TO A/CHOLDER.OTHERES KNOWING PERSONS MAY BE THOSE WHO USE TO RECEIVE PAYMENTS FROM A/CHOLDER.

YOU WERE UNDER DUTY TO REPORT LOSS OF CHEQUE TO BANK AS WELL AS TO POLICESTATION.

DESPITE ALL THIS YOU CAN FILE A CASE AGAINST BANK FOR LOSS OF CHEQUE AMOUNT CLAIMING THAT BANK HAS BEEN AT NEGLIGENCE IN PAYING CHEQUE WHICH DID NOT BEAR YOR SIGNATURE WHICH AMOUNTS TO DEFICIENCY IN SERVICE ON THE PART OF BANK.

Obtain the copy of bank circulars. The onus for non compliance to bank procedure shall be on branch.

Your chances of recovery thru any forum shall be ebtter.

Respected Sir

                          My cheque book has been stolen by someone on 23-04-13 which i did not notice at that time and on 26-04-13 there has been four cheques withdrawn from my bank account through self cheques bearing forged signature which came to my notice on the same day when i receive the message on mobile number as message alert service is activated on my account. But the message sent to me was of the last withdrawn of 40000/- and three cheques has already been drawn of amount of 48000, 45000, 45000 respectively. The cheque stolen was unsigned, so the question is how the person came to know the signature of me. The response from the bank is that signature on the cheque appears to be the same and hardely difficult to differntiate with naked eyes. i have registered a complaint in police station   in this regard and asked for CCTV footage. Kindly provide me legal opion in this case. 

All cheques go into slip bundle of the day.  It is bank's duty to keep each slip bundle of the day as record for a period prescribed in manual of instructions which is generally five years or so.  Hence all the transactions of banking of that branch would be present in the form of cheques, vouchers etc in that slip bundle.  If it is bank's practise to obtain signature at the back of cheque of the receiver, you can find out whether only your cheques do not contain signatures of receiver by asking the bank to give you slip bundle of that day for verification. These things are not known to policemen their acumen is not so rich as to think so deeper about these aspects.  So it is better you take personal care to verify in your own interest to prove case in court in your favor.

If you find that only your cheques do not contain receiver's signature at the back, it is a strong case for the bank to hold a domestic inquiry by its Audit and Vigilance department.   It also helps you to prove your point in court.

The cheque can be sent to forensic lab to find out whether it is forged signature or not.  If the report of lab confirms that it is a forged cheque, the onus is on bank to compensate your loss, because it happened because of bank's negligence.

Dear Jitender Kumar:

1) How do you know that the chq book got lost on 23.04.13? (just curious to know)

2) If you can prove that the signatures on the chqs are forged, then the bank is liable and has to compensate you. This is regardless of whether (a) you have been careless in safekeeping of the chq book or not, (b) the forged signatures cannot be identified as forged even by close examination with the naked eye.  At best the bank's lawyer will try to prove that you were careless - so what? Banks have no mandate to debit your a/c when the signatures are forged, so the bank will have to compensate you - as simple as that.

3) On the 1st query about a year back I'd like to add: the main issue is not if it is a self chq or not, the main issue is whether it is a 'bearer' chq or an 'order' chq. Since it was a bussiness/current a/c, I think that the chqs were issued as "Pay ... or Order" rather than "Pay .... or Bearer", as is the practice in most Banks. If it was an Order chq, and the chq was encashed by writing Self so as to make the chq as "Pay Self or Order", then if the signature of the a/c holder has not been obtained at the back of the chq, it is a SERIOUS LAPSE on the part of the Banker/Cashier, This is because sec 48 fof NI Act  says that "... chq (payable to order) is negotiable by the holder by indorsement and delivery thereof". If there was no sign of the a/c holder at the back of the Order chq, "indorsement" did not happen and so the payment was "not in order". The bank is liable to compensate the loss to the a/c holder for wrongful payment. However, if the chq was a "Bearer" chq and was written as "Pay Self or Bearer", then it is not mandatory for a/c holder's sign on the back of the chq, because as per Sec 47 of NI act, ".. chq payable to bearer is negotiable by delivery thereof". Hence, no indorsement (sign on the back of the chq) is legally required.

Needless to say, regardless of whether it was a Bearer or an Order chq, or whether sign on the back of the chq was there or not, or whether the a/c holder was careless or not, just by proving that the sign on the face of the chq is forged is more than enough for the bank to compensate the a/c holder.