The collecting banker is one who does the duty of collecting the proceeds of cheques and other instruments for its customers. A bank may undertake to collect a cheque either as a holder for value or merely as an agent to the holder thereof. Banker shall continue to act as an agent of its customer till the amount of the cheque has actually been paid off.
What are the duties and responsibilities?
Collecting Bank's Responsibility
Confirm the following checking ----
1. In case of Crossed Cheque confirm the genuineness of the drawee name and check signature in account and endorsement
2. Cheque is properly endorsed
3. Name of Drawee, Bank address, date, amount of taka in wording and numeric are ok
4. If any modification made, must be signed by the maker
5. Must be placed before the payee bank in time (to present a cheque for payment with in a reasonable time, not post/anti-dated)
6. Reason for dishonor must be mentioned (if a cheque is dishonored to notify its customer on the same day that it is aware of the dishonor)
7. Should not collect cheque of an unknown person (collecting proceeds in the payees’ account which is properly introduced.)
8. To adhere to current banking practice
9. Its responsibility is not discharged until the cheque in favor of its customer is delivered to the branch upon which it is drawn.
10. Acting as agent of the client
11. The date of issue of the instrument must not be before opening of the account