Page 56 - Office Practice and Accounting 10

Dishonour of Cheque
A cheque is ordinarily paid by the drawee bank if it is in perfect order. But sometimes
a cheque is not paid. When a cheque is not paid it is termed as dishonor of cheque. In
the following cases the bank may dishonor the cheque :
a. If the date is not written on cheque.
b. If the balance of account holder is insufficient to pay the cheque.
c. If the cheque is postdated or stale, i.e. old.
d. If a crossed cheque is presented at counter for payment.
e. If the drawer directed the bank to stop payment.
f. If the amount in words and figures differs.
g. If the signature of the drawer differs from his specimen signature.
h. If the account has already been closed.
i. If the words or figures on the cheque are not clear.
j. If the drawer becomes insolvent, or insane ,or dies within the knowledge of the
banker.

Computerized Payment System of Cheque
Modern banks use computers for storing financial information and processing
transactions. Tellers and other employees also use them to log information. Customers
often use computers for online banking. Computerized banking system is user
friendly, easy to manage, and easy to operate information system, based on fully
integrated and co-operative components.
Computers have revolutionized accounting and bookkeeping, and banks are some of
the first to switch to computers. Processing transactions manually takes a considerable
amount of time, and even expensive computers have allowed banks to save money
on labor costs. These systems are also great at avoiding mistakes. Banking tellers also
use computers to access customer data quickly. Instead of having to find a file for
every customer who enters, tellers can simply type in the customer's name and bring
up relevant data instantly. These systems can also process many transactions when
the customer is present, so tellers can give customers receipts reflecting deposits and
withdrawals. The bank can establish its branches at different locations of the country
and operate it through computerized system. Customers can deposit and withdraw
the amount from any branch which is known as ABBS (Any Branch Banking System).
Online banking has become more popular over the years, and people do not have to
go to the bank as often as they once did. Some banks even operate exclusively online
by providing online banking functionality and phone support when needed. These
banks have lower operating costs, and many are able to provide lower fees for their
customers. Credit card companies and other financial institutes allow customers to
access information and process transactions online.

50 Office Practice and Accounting 10