What happens if cheques / instruments are lost in transit / in clearing process?
If cheques are lost in transit or in the clearing process or at the paying bank’s branch, the bank should immediately bring the same to your notice so that you can inform the drawer to record stop payment and can also take care that other cheques issued by you are not dishonoured due to noncredit of the amount of the lost cheques / instruments. The onus of such loss does not lie with you, but the collecting banker. You are entitled to be reimbursed by the banks for related expenses for obtaining duplicate instruments and also interest for reasonable delays in obtaining the same.
