BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Under which section of Negotiable Instrument Act, the bank has obligation to make payment of cheque issued by a customer
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85
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131
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30
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31
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Explanation:
Detailed explanation-1: -31. Liability of drawee of cheque.-The drawee of a cheque having sufficient funds of the drawer in his hands properly applicable to the payment of such cheque must pay the cheque when duly required so to do, and, in default of such payment, must compensate the drawer for any loss or damage caused by such default.
Detailed explanation-2: -Section 131 in The Negotiable Instruments Act, 1881.
Detailed explanation-3: -A “promissory note” is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument.
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