What is Good for payment cheque? What are the Provision and New Changes Regarding Good for Payment in Nepal? Explain

Good for payment cheque:

Good-for-payment cheques, which are otherwise called certified cheques, are guaranteed or endorsed cheques that will never bounce because their payment has been guaranteed by the concerned drawee bank. Such a cheque is endorsed at the request of the account-holder only after ensuring that the account has sufficient balance and the drawer of the cheque is genuine. The signature or signatures of the account-holder or account-holders (in the case of joint accounts) is also verified before certifying the cheque. 

The amount of the cheque is blocked so that the cheque will not bounce due to insufficient balance. After completion of all the procedures, the cheque is handed over to the payee or beneficiary. As such, a good-for-payment cheque is guaranteed for payment. Hence the name. The drawee bank has full liability for the cheque. The intention behind a good-for-payment cheque is that the payee or beneficiary gets the payment without fail. 

As per the latest NRB directive, the signatures of two officials and the stamp of the bank or financial institution (BFI) are required to issue good for payment cheques. 

(source: Internet)

Changes on rules for issuance of Good for Payment Checks 

Nepal Rastra Bank has issued a mandate to Bank and Financial (BFIs) in connection to issuance of godd installment checks. According to the mandate dated 2071-06-26, the BFIs are required to issue Good for Payment Checks in the wake of exchanging the trade said out the checks to an alternate record. BFIs are required to specify a framework printed articulation in the checks or handover printed proclamation to the customer alongside the checks. The BFIs are likewise reqired to keep up the records of the same in the bank.

What is the difference between good for payment cheque and banker's cheque?

Infrequently on demand of clients investors confirm a specific check useful for installment subsequent to obstructing the related sum in clients account. However, this is once in a while requested. 

Banker's cheque is an instrument in the organization of a cheque supporting somebody and drawn on the specific bank office. This is in some cases issued on the demand of the client for the most part against some administration charge and furthermore this is utilized to make bank's own particular installment to various substances like land master for lease, temporary worker for repairing and different employments, stationery providers, and so on. In every one of the cases installment is typically guaranteed, unless some uncommon happenings like bank disappointment, and so on.