(1) The collecting or presenting bank shall be responsible for clearing or verifying payment instruments based on images and magnetic ink character recognition code line data.

(2) A bank shall

(a) enforce the know your customer norms and requirements; and

(b) observe all precautions which a prudent banker ought to undertake in the circumstances, which includes

(i) the apparent tenor of the instrument;

(ii) the physical feel of the instrument; and

(iii) any tampering visible to the naked eye with reasonable care.

(3) A bank shall employ suitable risk management techniques which includes

(a) scrutiny of high-value transactions;

(b) limit-based checking by officials; and

(c) account alerts.

(4) A collecting bank shall take full responsibility for collecting payment instruments on behalf of the payee and shall exercise due diligence