Internal and External Drafts

(i) If a bank issues a draft as a consequence of which a person who has deposited money in the bank receives his money at another place, it may possibly be said that as the bank has a right to make payment to an account holder at the place where he deposited the money, it is entitled to receive some wages from the depositor for making payment at other place.

(ii) If the bank issues a draft in favor of a person who has no account in the bank, it can charge wages from him, because it provides a means for him to obtain a loan from the internal or external agent and this assistance amounts to service rendered to that person. Furthermore, if the bank has provided foreign currency it is entitled to insist on repayment being made,in foreign currency and in the event of its abandoning this right i.e. if it accepts local currency instead of foreign currency it can take wages for this and can realize the entire amount from the borrower including wages.

(iii-a) If a person gives a sum of money to a bank and asks it to issue a draft in his favor for payment. elsewhere, either within the country or abroad, and the bank charges wages for rendering this service, it is in order in itself. and ii the draft is fora foreign country it is possible that it may be treated to be purchase and sale which is lawful, and the bank can claim some "'t by way of wages for the purchase and sale of this amount.

(iii-b) it is possible that a bank may borrow some money and then repay a loan elsewhere. And as in the matter of loan when the lender charges something extra from the borrower, it is interest therefore, if the borrower takes something extra from the lender; it will not be called interest.

(iv) If a person borrows home amount from a bank and issues its pay order elsewhere and the bank accepts it on payment of wages, it will be lawful to charge wages if the following procedure is adopted:

(iv-a) In the case of foreign currency sale and purchase should take place i.e. the bank may purchase foreign currency and some additional amount from a person in order to provide him with local currency. In that event there is no harm in charging wages.

(iv-b) As a bank is entitled to get repayment of a loan given by it at the place where the loan was given, it can claim wages if it agrees to the repayment being made at some other place. Besides the banks, the above mentioned procedure and orders "Y also be followed by the common people i.e. if a person gives some money to another person and asks him to give a pay order in the name of another person either in the same town or some other town, there is no harm if the pen;on accepting the pay order charges some wages for this task. Similarly if a person takes some money from another person and gives him pay order on a third person to realize the amount from him the person on whom pay order has been given can claim wages from the person who gives the pay order.

2866. As regards the above statement it makes no difference whether the person, on whom pay order is given, is a debtor or not a debtor, but agrees to pay against the pay order.