Hi there,
I'm a saudi student who has just arrived in India this week. I issued a certified cheque from my country so that I can cash it here in Bangalore but now the indian bank refused to cash it unless I open an account in their bank.
Is it legal for a bank to refuse to cash a certified cheque if I don't have an account with them?
If it's illegal then what should I do? To whom should I complain? The saudi monetary authority or the indian reserve bank?
The bank refused to cash my certified cheque
shb27
30 December 2016 16:20:46
5
Fred
30 December 2016 23:32:12
27493
Just open an account.
You can always choose to cash the cheque and leave the account dormant.
No loss and saves a lot of messing around.
shb27
30 December 2016 23:52:46
5
Actually the procedures here are complicated and it will take a month at least to have the money in my hand.
Fred
31 December 2016 01:14:58
27493
Try other banks, but I can't see why they don't want to cash an unknown cheque.
sachingoel85
31 December 2016 07:16:54
238
Normally money laundering and Identity issue is big worries these days all over the world. And I bet opening bank account is far more easier in India if we compare with other countries of the world.
shb27
31 December 2016 11:19:45
5
I need some cash as soon as possible because I have to pay fees within few days. I can't wait for a month. Additionally, from my own experience, cashing a certified cheque is instant and only requires a passport. That's applied in almost all countries. A certified cheque is the safest alternative for carrying cash from a country to another.
Fred
31 December 2016 13:38:11
27493
shb27 wrote:. A certified cheque is the safest alternative for carrying cash from a country to another.
http://money.stackexchange.com/question … -the-other
5 CERTIFIED CHEQUES
5.1 Introduction “Certification” is the name given to the marking of a cheque by a bank to show that its customer has an existing account with sufficient funds to meet the drawn amount.18Certification is demonstrated by a mark on the cheque, typically a stamp marked “certified.”19 It must be signed by a bank or other financial institution.20 Certified cheques are not a guarantee of payment; items bearing forged endorsements can be returned for up to six years.
It seems you might be working under the false assumption the cheque will be accepted without question but a quick search shows a lot of fraud and attempted fraud using these cheques, so the bank is just being careful.
If you open an account, the bank will take the cheque, wait for it to be honoured by the issuing bank, then credit your account.
Lack of research and/or assumption is a common cause of cock ups.
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