01. Cheques drawn on Branch :
The paying banker shall honour only those cheques which are drawn against the account maintained at a branch of the bank where the cheques are presented.
02.Presentation within validity needed :
The paying banker is legally bound to pay only such cheques which are presented to him for payment within a reasonable time. Reasonable time is 6 months from the date of issue of the cheque.
03. Presentation within banking hours :
Cheque must be presented within the banking hours. Any cheque presented after the banking hours has no legal effect and therefore banker cannot be held liable for refusing payment on such cheques.
04. Sufficient balance :
Funds in tha a/c must be sufficient and available to honour the cheques. For dishonour of cheque due to shortage of funds banks are not held responsible. Rather, if cheques are drawn without funds, drawers by punishable under Section -138.
05. Must be valid instrument :
Cheques not drawn in the proper form are refused by the paying banker. Section -5 & 6 of the N.I. Act provide that the bank should examine the contents of the cheque to ensure taht it is perfectly a valid instrument containing an unconditional order to pay a certain sum of money.
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