February 22, 2012

Short Note: Law & Practice of Banking

Banking Diploma Courses in Bangladesh under The Institute of Bankers, Bangladesh (IBB)
 Laws and Practice of Banking-JAIBB
Short Note:

A cheque is discharged by payment in due course, that is to say payment made by the drawee-banker to the holder of the cheque in good faith and without notice that his title to the cheque is defective. The holder to
whom payment is made may be the payee, an indorsee or the bearer according to the nature of the instrument, or the way in which it has been indorsed. A thing is deemed to be done in good faith where it is in fact done honestly, whether it is done negligently or not.
In ordinary circumstances, a cheque drawn in proper form, and complete in every particular, must be paid or refused payment as soon as it is presented. But it the circumstance connected with its presentation are such as to raise reasonable suspicious in the banker would also be entitled to postpone payment it the cheque were drawn in an unusual manner or bore upon its face peculiarities that would raise doubts in and ordinary person's mind as to the genuineness of the order.