Under Reserve - Definition - Law Dictionary Home Dictionary Definition under-reserve

Definition :

Under reserve, a payment under reserve is under-stood in banking transactions to mean that the recipient of money may not deem it as his own but must be prepared to return it on demand. The balance of convenience clearly lies in allowing the normal banking transactions to go forward, United Commercial Bank v. Bank of India, AIR 1981 SC 1426 (1440): (1981) 2 SCC 766: (1981) 3 SCR 300.