BANKING AFFAIRS

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: -An unpresented cheque simply means that a cheque has been written and accounted for, but it has not yet been paid out by the bank from which the money is being drawn. Unpresented cheques are also referred to as outstanding cheques because the funds in question are, as the name suggests, outstanding.

Detailed explanation-4: -The cheque issuer’s bank have been unable to determine whether the cheque is a genuine payment or not. This could be for a number of reasons including the possibility of fraud. The person who gave you the cheque has closed their account, which was completed before the cheque was presented for payment.

Detailed explanation-5: -A cheque payment is a debit transaction as the transaction regarding the payment of a cheque is initiated by the payee or beneficiary. 1 Reserve Bank of India assumed responsibility of note issue from the Controller of Currency in 1935.