A bank as a collecting banker has misplaced the cheque accepted for collection. The customer when he approached to know about the realization of the cheque, then only the bank could realize it has misplaced the Cheque. In this case,

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	The bank is responsible
B	Till the cheque is realized or returned, the bank is not responsible
C	If the cheque had been purchased, then the bank would have been responsible and not for collection item
D	The bank is not responsible

Explanation:

Detailed explanation-1: -The payee has to sent the notice to the drawer with 30 days from the date of receiving â€œCheque Return Memoâ€ from the bank.

Detailed explanation-2: -MICR code is a code printed on cheques using MICR (Magnetic Ink Character Recognition technology). This enables identification of the cheques and which in turns means faster processing.

Detailed explanation-3: -A payer bank is liable to its customer for damages caused by the wrongful dishonor of an instrument. The bank’s liability is limited to actual, provable damages including any potential consequential damages.

Detailed explanation-4: -Collecting Banker as an Agent A collecting banker acts as the customer’s agent when he credits the check to the latter’s account after a drawee’s banker actually pays the money. He then will be permitted to take the sum of the cheque.

There is 1 question to complete.