2.2.3 Stop Payments

A Stop Payment maintained in the ‘stop payment’ table is an instruction given by a customer to his bank directing it to perform stop payment against a cheque.

This instruction can be based on any of the following:

• A single Cheque number
• A range of Cheque numbers
• The amount for which the Cheque is drawn

When a stop payment is affected, the stop payment status in the ‘Customer Accounts Maintenance’ table gets updated to indicate the presence of a stop payment instruction for the customer account. Whenever a Cheque based transaction is initiated through Data Entry the system validates if any stop payment instruction has been issued against it. Payment against a Cheque is stopped if a stop payment instruction exists for that Cheque.

Stop payment for a Cheque can be specified for a defined period. You can also maintain a stop payment bearing no expiry date, that is, the instruction remains effective until revoked.

If a stop payment instruction is issued (for a cheque or an amount) against the account number, the system will automatically check the ‘Stop Payment’ box. When the stop payment instruction is withdrawn, the status gets updated accordingly. If a customer has requested for stop payment of multiple cheque, the ‘Stop Payment’ option will continue to remain checked till the last request is also canceled. After cancellation of the last stop payment instruction, the option gets updated (unchecked) immediately.

Here you define the following:

• Account number on which you are enforcing a stop payment
• Whether stop payment is being defined against Cheque/Cheques or an amount
• If stop payment is based on Cheque then the start and end Cheque numbers
• If stop payment is based on amount then the Cheque amount
• Amount for which the stop payment has been enforced
• Period for which this stop payment should remain effective
• Any reason applicable to this stop payment. It could be the purpose for which it has been enforced

Any number of stop payment instructions can be maintained for an account. With each stop payment instruction enforced on an account, the system displays the stop payment number. This number denotes the number of the current stop payment records being maintained for this account.

This topic contains the following subtopics:

• Create Stop Payments
  This topic describes the systematic instructions to create stop payments.
• Amend Stop Payments
  This topic describes the systematic instructions to amend stop payments.
• Close Stop Payments
  This topic describes the systematic instructions to close stop payments.