Question

If a cheque presented to the clearinghouse is returned unpaid for any reason, the banker has to enclose the cheque to a Returning Memo while returning the instrument to the customer. This provision has been prescribed under which of the following?

• A. Negotiable Instruments Act, 1881
• B. Reserve Bank of India Act, 1934
• C. Banking Regulation Act, 1949
• D. RBI Clearing House, Rules

Answer 1

Answer: (D)

RBI Clearing House, Rules

According to the Reserve Bank of India Clearing House, Rules which list the basic guidelines for clearing all types of dues of the clearing house, if any cheque presented to the clearinghouse is returned unpaid for any reason, the banker has to enclose the cheque to a Returning Memo which records all such transactions when he returns the instrument to the account holder or the customer.