Banking Exam Question - What are the NRB Directives (2074) Regarding Official Transaction through A/C Payee Cheque? Explain

Introduction - A/C Payee Cheque

An account payee check is not transferable and it is only paid into the account of the person whose name is written on the check. The words 'not negotiable' can also be used to generate the same effect. Thus, both refer to same types of checks.

NRB Provision of A/C Payee Cheque

The licensed bank and financial institutions will be required to deposit the account on the bank or financial institution only after taking the amount of approved debt to any company, firm or organized association. In addition to sleep, loan amount will be collected in the name of firm or organization organized by the Accountant Payee letter / electronically through the account of SBI related debtor.

Financial institution won't acknowledge carrier checks issued for installments of sums higher than Rs five million and issued to any firm, organization or association after November 15, as per the national bank's most recent round.

Back in June, Nepal Rastra Bank (NRB) had coordinated money related foundations not to respect carrier checks implied for installments to any firm or association from the earliest starting point of the current monetary year. For installments to such enrolled associations and firms, installments should be made through record payee checks as it were. Moreover, it had likewise taboo monetary organizations to respect conveyor checks issued for installments higher than Rs five million in accordance with the counter tax evasion run the show. Be that as it may, issuing the present mandate, NRB has expanded the due date.