BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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it is called settlement of the cheque
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it is called withdrawing of the cheque
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it is called nullifying of the cheque
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it is called return of the cheque unpaid
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Detailed explanation-1: -A cheque falls under the dishonoured category when a payee cannot successfully deposit the payer’s cheque. A payer is the one who issues a cheque to the payee. The payee deposits this cheque in the bank. If the bank refuses to pay the amount mentioned on the cheque, the cheque is dishonoured.
Detailed explanation-2: -Dishonoured cheques (also spelled check) are cheques that a bank on which is drawn declines to pay (“honour”).
Detailed explanation-3: -If a cheque is dishonoured The holder or payee can resubmit the cheque within three months of the date on it, if he believes it will be honoured the second time. However, if the cheque issuer fails to make a payment, then the payee has the right to prosecute the drawer legally.
Detailed explanation-4: -(iii) Cheques dishonoured for want of funds in respect of all accounts should be returned along with a memo indicating therein the reason for dishonour as “insufficient funds."