Laxmi Bank to crusade against bad checks

Laxmi Bank will fine account holders of the bank who are repeatedly found issuing bad checks, i.e. checks issued intentionally without sufficient balance in the accounts.

The bank had decided to take the action "to encourage prudent financial behavior among clients and all stakeholders of the bank," states a press release issued by the bank on Wednesday. "This is in line with our responsible banking initiative," adds the release.

To kick start this noble initiative, the bank has already started keeping records of account holders who issue bad checks. "These records will be reviewed frequently and account holders found ignoring repeated requests will be requested to correct their account behavior," states the release. "If they are found flouting these requests, the bank may suspend or close such accounts as a last measure."

Quoting Bhubal Rai, chief operating officer of Laxmi Bank, the release states, "Writing a bad check not only affects the credibility of checks as a mode of payment, but also pushes us back to being a ´cash-based´ economy."

Source: Republica