Legal Question in Banking Law in India

31.07.2013

Dear Sir / Madam,

The onus is on the bank to credit the Customer's A/c in the event the payee of the demand draft has not encashed it within the validity period. And, in case you have taken a demand draft in cash and realized that the party to whom you issued the draft has not encashed it on or before the expiry of the validity period, you can claim the unencashed amount of the draft (on its return unencashed back to you by the payee) from your bank. The bank remains liable to return the amount back to you.

Regards,