Case Description

M/S Triple N Associates, maintains a current account with HDFC Bank. Firms account is operated jointly by Mr.Nitin & Mr.Naveen. As per firms instructions all a/c affairs will be dealt by Mr. Nitin and Mr. Naveen only. Mr. Nishant one of the genuine partner of the firm request to stop the payment of a cheque of Rs. 1 lakh.

What should a branch manager do in such situation.

Cheque Based Duties

DUTIES OF PAYING BANK Verify the balance sufficiency in the account. Ensure there is no Garnishee or Income Tax attached order prohibiting payment. There is no notice of death , insolvency or insanity of drawer.

DUTIES OF COLLECTING BANK Presentation of cheque within reasonable time. cheque should have been crossed either generally or specially before it comes in to the hands. While collecting the cheque, the banker acted in good faith and without negligence.

Conditions For Dishonouring Of A Cheque

Insufficient funds No arrangement Excess arrangement Payment stopped

Refer to drawer
Closure of account by drawer

Rules For A Joint Account

The accountholders can also authorise a person to operate an account on his, their behalf by providing a Power of Attorney. If one of the account holders requests an additional service, such as internet banking or an overdraft facility, this request is often granted without the prior consent of the other account holders. In case of joint credit cards one is classified as main a/c holder who is liable for all debts run upon the card.

In case of accountholders with different income level the interest rates will be charged on the income of first account holder.
A maximum of two ATM cards can be issued for a joint account.

Access to funds- Joint Accounts

Either or Survivor Anyone or Survivor Former or Survivor Latter or Survivor Minors Account

Conclusion
Any mandate/power of attorney given to a third person to operate the account is to be given with the consent of all account holders.
Individuals jointly running a business can open only a current account for business transactions. The person authorised by the company will have the authority to operate the account.