Dishonour of cheque by a banker without any justifiable reason is called

BANKING GENERAL KNOWLEDGE

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

A	valid dishonour of cheque
B	Unmindful dishonour of cheque
C	Negligence dishonour of cheques
D	Wrongful dishonour of cheque

Explanation:

Detailed explanation-1: -Wrongful dishonor occurs when a bank or credit union fails to honor a valid check or draft sent to it. A bank is liable for its mistake if it is proved that wrongful dishonor has occurred on its watch. Dishonor refers to a check or draft presented to a bank by a party with insufficient funds.

Detailed explanation-2: -As stated in the Uniform Commercial Code, refusal to make payment for a negotiable instrument tendered by a customer to a bank i wrongful dishonor. It there is sufficient funds in an account to cover for the payment of a valid negotiable instrument and the bank fails to comply, it is wrongful dishonor.

Detailed explanation-3: -If the banker is not holding sufficient funds of the drawer, unless the banker has agreed to honour the cheque without sufficient funds. 7. If the customer countermands payment and communicates the same to the bank properly.

There is 1 question to complete.