Para 4.3 — CAM
Original Rule Text
4.3 ISSUE OF FRESH CHEQUES IN LIEU OF LOST CHEQUES
What This Means
This para addresses the procedure for issuing a fresh cheque when an original cheque has been lost. When a payee reports that a government cheque has been lost before encashment, the drawing officer must follow a defined procedure to verify that the original cheque has not been encashed, stop payment at the bank, obtain an indemnity bond from the payee, cancel the original cheque in records, and then issue a fresh cheque. This protects the government against fraudulent double encashment while ensuring the legitimate payee receives their payment.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1A defined procedure must be followed before issuing a fresh cheque in lieu of a lost one
- 2The drawing officer must first confirm with the bank that the original cheque has not been encashed
- 3Stop-payment instructions must be issued to the bank for the lost cheque
- 4An indemnity bond is typically obtained from the payee to protect against double payment
- 5The original cheque must be cancelled in the cheque register and accounts records
Practical Example
A contractor reports that the government cheque for Rs 3 lakh issued to them for supply of stationery has been lost in transit. The PAO immediately sends a stop-payment request to the bank, confirms that the cheque has not already been encashed, and asks the contractor to submit an indemnity bond. Once the bond is received and the bank confirms non-encashment, the PAO cancels the original cheque in the Register of Cheques Issued and issues a fresh cheque for the same amount. The cancellation and fresh issue are both recorded in the cheque register.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can a lost cheque be revalidated instead of reissued?▼
Who bears the cost of issuing a fresh cheque?▼
What if the lost cheque has already been encashed?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.