Banking Regulation Act, 1949 · Section guide
Section 45Z: Return of paid instruments to customers
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 45Z governs early return of paid instruments to customers before expiry of the preservation period fixed under Section 45Y rules. A bank may not return such an instrument unless it first makes and retains a true copy of all relevant parts by a mechanical or other process that itself ensures accuracy. The bank may recover the copying cost from the customer; “customer” includes a Government department and a statutory corporation.
Official statute linkedProvision-specific anatomyPractical case + evidence file
Statutory structure and clause/subsection decode
Section 45Z(1) — trigger
The customer asks for return of a paid instrument before expiry of the preservation period specified by rules under Section 45Y.
Mandatory precondition
Before returning it, the bank must make and retain a true copy of all relevant parts by a process that itself ensures accuracy.
Section 45Z(2)
The bank may recover from the customer the cost of making the copies.
Explanation
For Section 45Z, “customer” includes a Government department and a corporation incorporated by or under any law.
Practical example
A corporate customer asks the bank to return an original paid instrument while the statutory preservation period is still running. The bank cannot simply hand back the original. It first creates and retains an accurate true copy of all relevant parts using an appropriate process, then may return the original and recover the copying cost.
Evidence / working-paper checklist
- Section 45Z evidence: account/locker/safe-custody master record.
- Section 45Z evidence: nomination/cancellation/variation form and acknowledgement.
- Section 45Z evidence: identity/death/inventory/payment evidence for a claim.
- Section 45Z evidence: record-retention or claim-processing evidence under the current Rules.
Retain the event date and source version with the file so the conclusion remains reproducible after later amendments.
Common mistakes to avoid
- For Section 45Z, avoid treating a nominee as universal beneficial owner for all legal purposes.
- For Section 45Z, avoid using obsolete nomination forms after a rule change.
- For Section 45Z, avoid processing a death claim without preserving identity, death and inventory/payment evidence.
Linked Rules, RBI directions, notifications and forms
Linked instruments keep their own legal basis; they are not attributed to Section 45Z unless the official instrument says so.
Related sections inside the Act
Use these links to read Section 45Z in its statutory sequence, especially where the provision imports definitions, approvals, appeals, penalties or winding-up consequences from neighbouring sections.
Current-law source control
Source control: Section 45Z is anchored to the official DFS consolidated text; later changes require separate Gazette verification.
Dated matters: verify any later Gazette, RBI direction or binding judgment affecting Section 45Z on the event date.
Section 45Z Q&A
When is Section 45Z triggered?
When a customer requires return of a paid instrument before expiry of the preservation period fixed under rules made under Section 45Y.
What must the bank do before returning the instrument?
Make and keep a true copy of all relevant parts by a process that itself ensures accuracy.
May the bank recover copying cost?
Yes. Section 45Z(2) permits recovery of the cost of making the copies from the customer.
Does “customer” include Government bodies?
The explanation includes a Government department and a corporation incorporated by or under law.
Primary official sources
Disclaimer
This Finin2min page is an educational and professional reference. Banking regulation is fact-, entity- and date-sensitive. Verify the current Act, Gazette amendments and commencement notifications, applicable RBI Rules/directions and the transaction record before acting or filing.