GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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amount in figures
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amount in words
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amount written as not over
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amount in words in figures, whichever is higher
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Detailed explanation-1: -Legal amount and courtesy amount: The amount written in words is called ‘legal amount’ of the cheque and amount written in figures is called ‘courtesy amount’. Where there is a difference between words and figures expressed in a cheque, the amount in words is the amount payable as per Section 18 of N.I. Act 1881.
Detailed explanation-2: -According to state laws, if a check contains contradictory terms, words prevail over numbers. In the same way, handwritten terms prevail over printed or typewritten terms.
Detailed explanation-3: -18. Where amount is stated differently in figures and words.-If the amount undertaken or ordered to be paid is stated differently in figures and in words, the amount stated in words shall be the amount undertaken or ordered to be paid.