BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Honour customers’ cheque
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Exercise lien
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Maintain secrecy of his customers’ accounts
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Honour customers’ bill
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Detailed explanation-1: -banker has an obligation to honour cheques of its customer, drawn on him and presented for payment, subject to the condition that there are sufficient funds in the accounts and the cheque is in order.
Detailed explanation-2: -The banker has an obligation to honour his customer’s cheques, and is liable for wrongful dishonour. Similarly, the Banker has an obligation to stop payment by dishonouring his customer’s cheque, when he receives Garnishee Order against his customer’s account.
Detailed explanation-3: -The bank has a statutory obligation to honor the checks/cheques of its customers up to the amount standing to the credit of the customer’s account.
Detailed explanation-4: -Following are the circumstances when a banker refuse payment of Cheque: When the customer has countermanded payment. When the banker has received a garnishee order. When the customer has died.
Detailed explanation-5: -A cheque is said to be honoured if the banks give the amount to the payee. While, if the bank refuses to pay the amount to the payee, the cheque is said to be dishonoured. In other words, dishonour of cheque is a condition in which the bank refuses to pay the amount of cheque to the payee.