• Peter has just moved to Philippines for a 1 year project that his company wants him to work for.

• Peter’s company provided him accommodation only for a week. He found it very difficult to find a house owing to his poor Filipino speaking skill.

• Peter somehow managed to find a house near his work place. He signed a 1 year contract with the landlord and he handed over the current month’s rent in the form of cheque.

• The house was unfurnished. Since Peter planned to stay in Philippines only for a year, he requested his landlord to rent him the necessary furniture for a year. The rent for furniture is PHP400 per month. Although the house rent would be paid by Peter every month, Peter asked whether he could pay the rent for furniture twice a year. The landlord agreed and Peter provided her a post-dated cheque of PHP2400 for 6 months with date 1st July.

• On July 1st, the landlord deposited the post-dated cheque that Peter gave him 6 months back.

• Play the role of a bank officer performing cheque related transactions. Perform the transaction on cheque deposit as per the process flow described in the forthcoming page.

• But on 10th June, Peter found a new job in UK asking him to join on 5th July. He knew that his landlord would deposit his post-dated cheque on July 1st. Before leaving to UK, Peter called the bank to stop the cheque payment that his landlord had deposited.  Peter then flew to UK without paying for renting landlord’s furniture. The bank performed stop payment as per Peter's advice.

• Perform the stop payment transaction using Flexcube UBS

• The landlord calls up the bank to check the status of her transaction only to find that her client had moved out without paying her the rent for furniture. 

• Now that you have performed a transaction on post-dated cheque, explain the disadvantages involved in it. 

Business Scenario 2