Late payment of cheques means cash payment of a cheque after transaction hour. Banking law does not allow any late payment. Bankers always try to discourage this type of payment due to following reasons:
1. Cheque may be stopped before next working day
2. Account holder may be expired
3. Account holder may become insane
4. Account holder may be declared as insolvent
5. Account may be garnished/blocked.
However on special cases the branch authority sometimes allow late payment if investment/credit balance of the account exists after observing the following formalities:
1. Manager must mark late payment on the cheque with his initial.
2. Cash of the late payment cheque must be received by the account holder duly putting his two signatures on the back side of the cheque, not by the bearer.
3. Cheque should be posted, to be passed by authorized officer(s) and also to be entered into the payment register.
4. This payment cheque must be made as voucher on the following working day