Can a bank insist on withdrawal through cheque only?

[xfactcc]

I have seen in two PSBs, i.e., BoMaharastra and UBI myself that insist on cash withdrawal through cheque only if one has it. There may be others too.

Since for most people chequebook costs money after a few pages, it's not convenient.

Can banks by policy do that or is it these branch's internal unofficial policy that can be challenged by complaints?

Just curious.

Edit: corrected previous error mentioning 'deposit' instead of with withdrawal. Sorry.

 

[panchabhut]

cash deposit through cheque? seems contradictory.
it can be either cash (currency note) or bearer cheque or crossed cheque.

 

[xfactcc]

S

cash deposit through cheque? seems contradictory.
it can be either cash (currency note) or bearer cheque or crossed cheque.

Sorry, my mistake. I meant to say withdrawal. Can banks insist on withdrawal via cheque only?

 

[xfactcc]

It would be helpful if anyone can answer the same. I feel like customer should have the choice of withdrawal through withdrawal slip too.

 

[Deleted member 11974]

Afaik banks ask for another bank account details to credit the proceeds atleast in pvt banks

 

[RAMESH BABU N]

There are two practices in Indian banking industry.
One - Some banks insist that only Cheque's must be used (and not withdrawal slip accompanied with passbook) over a certain limit. Passbook need not accompany cheques. For self withdrawals n for bearer cheques for third parties. Applicable for savings bank customers.

Two - Some banks insist that such high value withdrawals - over 50K are anyway not paid in cash without PAN - passbook is a must - whether using cheques or using withdrawal slips.

Both are OK and are legally right - Bankers do have that freedom (or legally speaking - discretion) to decide n implement what is needed in their branch/zone/region.

 

[RAMESH BABU N]

Withdrawal slips are for only SB Accounts. Other types - Current Accounts, Cash Credits, some Term Loans use only Cheques.

Banks also use Plain Debits and other types of Debit instruments - called vouchers - for debiting customer accounts or their own internal accounts.

There are many types/formats of credit vouchers or credit slips.

 

[xfactcc]

There are two practices in Indian banking industry.
One - Some banks insist that only Cheque's must be used (and not withdrawal slip accompanied with passbook) over a certain limit. Passbook need not accompany cheques. For self withdrawals n for bearer cheques for third parties. Applicable for savings bank customers.

Two - Some banks insist that such high value withdrawals - over 50K are anyway not paid in cash without PAN - passbook is a must - whether using cheques or using withdrawal slips.

Both are OK and are legally right - Bankers do have that freedom (or legally speaking - discretion) to decide n implement what is needed in their branch/zone/region.

Thank you for your elaborate response.

Can a bank insist on cash withdrawal via cheque only for any withdrawal regardless of value? I have seen that happen; can I dispute that?

 

[RAMESH BABU N]

Theoretically yes. But, practically no.

Unlike other subjects - which have definitive set of rules n regulations n fixed processes - ONLY banking has descrition - difference between theory n practice. This descrition can't be contested legally.