5.2 Payment of Cheques

5.2.1 Nature of Cheques A cheque is a bill of exchange drawn on a banker and payable on demand (Negotiable Instruments Act, 2034). Essentials: an unconditional order, to a specified banker, signed by the drawer, for a certain sum, payable on demand to order or bearer. A post-dated cheque operates from its date; a stale cheque (beyond the validity period NRB fixes, currently a matter of directive) need not be paid. 5.2.2 Collection of Cheques The collecting bank takes the cheque for the customer, obtains payment through clearing, and credits the account. The collecting banker must act in good faith and without negligence in verifying regularity — the classic liability zone: conversion of a cheque stolen or taken under a forged endorsement. 5.2.3 Payment by Credit Cards Card payment is a three-party arrangement: cardholder, merchant, and issuer bank through the card network. The issuer pays the merchant (less discount), and the cardholder repays the issuer per the card agreement's terms. Unauthorized transactions fall in the regulatory dispute-resolution frame of NRB directives and the consumer framework.