WHEN a drawer makes a “stop payment order” of a particular cheque, it will be binding on the banker to stop the payment of the cheque, if it is received before the payment of the cheque is made to the payee. But such stop payment order should be made in writing by the drawer, giving the complete details of the cheque number, the payee’s name, the date of the cheque, amount of the cheque and fully signed by the drawer.
What happens when you stop payment on a cheque?
If the stop payment order is received through a mobile phone, the banker must return the cheque to the payee unpaid with the remark, ‘payment stopped by the drawer through phone, written confirmation is awaited”. Here, it should be noted the payment of the cheque is postponed, but not permanently stopped. If the cheque is received in clearing, the cheque should be returned giving the same reason. Payment of the cheque will be stopped after written confirmation to that effect is received from the drawer of te cheque.
Banks do charge some amount as service charge for carrying out the stop payment order.
How do I block an issued cheque in SBI bank?
You can stop payment of the cheque issued by you by two ways
Through internet banking facility By submitting a letter to the bank in person It is better that you submit the letter in person to the bank branch, in case you are comfortable to go to the bank branch and get an acknowledgment in the duplicate copy of the letter with date and time of receipt.
The issued cheque can be presented by the payee or holder at any time and you should take action immediately.
In case you happen to be at outstation, use internet banking facility
Reason For Return
REASON FOR RETURN
Effects not cleared, present again.
Reference to Drawer
Refer to drawer
Kindly contact Drawer/Drawee Bank and please present again.
Drawer’s signature incomplete
Drawer’s signature illegible
Drawer’s signature differs
Drawer’s signature required
Drawer’s signature not as per mandate
Drawer’s signature to operate account not received
Drawer’s authority to operate account not received
Alteration requires drawer’s authentication
Payment stopped by drawer
Payment stopped by attachment order
Payment stopped by court order
Withdrawal stopped owing to death of account holder
Withdrawal stopped owing to lunacy of account holder
Withdrawal stopped owing to insolvency of account holder
Instrument post dated
Instrument out dated/stale
Instrument undated/ without proper date
Instrument mutilated; requires Bank’s guarantee
Cheque irregularly drawn/ amount in words and figures differs