What is the validity period of a cheque in Nepal?

A cheque in Nepal is generally valid for 6 months from the date written. Post-dated cheques are valid but are not processed before the written date.

What should I do if my cheque bounces?

Obtain a dishonour slip from the bank, notify the issuer, present the cheque three times to collect three slips, then submit them to the bank for CIB blacklisting where applicable. Legal timelines (e.g. FIR) depend on facts and advice from qualified counsel.

What if I lose my cheque requisition slip?

Visit your bank with ID proof. Charges and indemnity requirements vary by bank; you may pay a fixed fee and/or per-leaf charges. Confirm the latest tariff at your branch.

Nepal · Cheque compliance

Cheque compliance & legal protocols manual

2083 edition — writing rules, bounce procedures, blacklisting & legal consequences (Nepal)

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Section 1: Cheque writing rules & formatting

Overview

Proper cheque writing prevents rejection and keeps clearing smooth.

MICR band

The bottom machine-read strip must stay clean — no writing, staples, folds, or correction fluid.

Reject risk Small marks can cause ECC rejection.

Validity & date

Typical validity: 6 months from date (confirm with bank)
Date format: DD/MM/YYYY
Post-dated: Valid; not paid before written date

Signature & corrections

Individual: Match specimen signature
Company: Stamp + authorised signatories per mandate
Ink: Blue/black ballpoint; avoid smudging gel ink
Alterations: Many banks reject corrected cheques — new leaf

Account payee vs bearer

Cross with two parallel lines and “A/C Payee” to credit the payee’s account only. NRB directives set high-value account-payee rules — ask your bank for the current threshold.

High value: A/C Payee

Section 2: Cheque bounce (dishonour)

Documentation

Keep dishonour memos/slips for each presentation. Processes vary by bank; this is not legal advice.

First return: collect bank dishonour slip
Notify drawer in writing as counsel advises
Re-present per banker guidance; retain each slip
CIB / reporting per applicable rules

Timelines

CIB forwarding: Bank-specific; get written timelines
Police / court: Limitation periods apply — consult a lawyer immediately
Jurisdiction: Often tied to drawee branch / facts

Laws (illustrative)

Aspect	NI Act	Banking Offence Act
Recovery	Civil remedies	Offence-based
Fines / custody	As per statute	As per statute
CIB record	Until resolved / updated

Section 3: Stop payment

When it may apply

Lost / stolen reported promptly
Suspected fraud
Commercial dispute (document)
Material instrument error

Fees & steps

Typical fee: Rs. 200–500 (confirm tariff)
Channels: Mobile / branch written request
Proof: Keep acknowledgement / reference

Important

Stopping payment to dodge a legitimate debt can create civil and criminal exposure. Seek legal advice.

Not immunity

Section 4: Lost cheque & requisition

Signed cheque lost

Stop / block via digital channels immediately
Branch visit with ID; block series if needed
Police report if appropriate
Indemnity as per bank format

Lost requisition slip

Charges: Fixed fee and/or per-leaf — higher of published slabs
New book: Application, bond, turnaround per branch

Section 5: Legal framework

Banking Offence & Punishment Act 2064

Criminal offences relating to banking instruments and regulated conduct.

Negotiable Instruments Act 2034

Civil framework for cheques, bills, and notes.

NRB unified directives

Operational standards for BFIs — follow latest circulars for cheque format and clearing.

CIB — illustrative effects

Area	While listed	Clearance
New credit / accounts	Restricted	After bank / CIB update
Travel / compliance holds	Possible	Case-specific

Section 6: Common questions

Merger — old cheques?

NRB may allow a transition window; switch to new stationery early.

Words vs figures differ?

Words may prevail legally, but banks usually reject mismatches — fix before issue.

Printed corporate cheques?

Only with CTS/NRB-compliant setup; most use bank-issued books.

Positive pay?

Banks may verify high-value items with the drawer — respond to avoid returns.

Endorsement?

Depends on crossing and payee mode; account payee generally cannot be freely endorsed away.

Section 7: Final checklist

Before you sign

Tap an item to mark it done.

Date within bank validity policy?
Words and figures match?
MICR band clean?
High value crossed A/C Payee if required?
Signature matches specimen?
Company stamp / mandate OK?
Sufficient balance?

Section 8: Security & disclaimer

Safe habits

Lock cheque books away from requisition slips
Never sign blanks
Shred spoiled cheques
Reconcile statements promptly

Disclaimer

This guide is general education only — not legal, tax, or investment advice. Confirm fees, limits, and procedures with your bank and qualified professionals.