Under the Cheque Truncation System (CTS), if a presenting bank mistakenly scans and processes a Post-Dated Cheque (PDC) before its due date resulting in wrongful payment by the drawee bank, who bears the primary liability for this operational negligence?

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Banking · Negotiable Instruments & CTS

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

The Presenting Bank, due to its primary duty to verify instrument validity and mandate before truncation

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Answer 1

The Presenting Bank, due to its primary duty to verify instrument validity and mandate before truncation

Answer 2

The Drawee Bank, because it is solely responsible for verifying the date image before debiting

Answer 3

The Customer depositing the cheque, due to contributory negligence

Answer 4

NPCI, as the clearing house infrastructure provider

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