Paying Banker

A Banker who holds the account of the

drawer of the cheque and is obliged to make payment, if the funds of the customer are sufficient to cover the amount of he cheque drawn or if overdrawing facility is given to the customer

Mandatory functions
PROPER FORM
PHYSICAL CONDITION CROSSING OFFICE OF DRAWING

 DATE OF THE CHEQUE

TIME OF PRESENTATION AMOUNT MATERIAL ALTERATION SIGNATURE OF THE DRAWER

 ENDORSEMENTS
LEGAL RESTRICTIONS
COUNTERMANDING 2. DEATH 3. INSOLVENCY 4. LUNACY 5. GARNISHEE ORDER
1.

SUFFICIENT BALANCE

Protection Available to Paying Banker Banker s Protection Negotiable Instruments Act 1881 Certain Sections of the Act

Protection Available to Paying Banker 85 (1) regularity of endorsement- no Section

break in the chain of endorsement- paying bank not concerned with genuineness
Section 85 (2) All endorsements on a bearer

cheque are meaningless

Section 85 (a) similar to sec 85(1) & sec

85(2) are available for a Bank Draft

Protection Available to Paying Banker

Section 89 Cheque with material alteration

which is not visible with necked eye

Section 128 for a crossed Cheque, if the

payment is in due course, the paying bank gets protection