GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Discharge from liability
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Cheque payable to order
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When cheque not duly presented and drawer damaged thereby
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Discharge by allowing drawer more than forty eight hours to accept
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Detailed explanation-1: -(1) ]Where a cheque payable to order purports to be indorsed by or on behalf of the payee, the drawee is discharged by payment in due course.
Detailed explanation-2: -A pay-to-order check ensures that only the payee specified on the check is authorized to receive payment. This helps protect the payer from an unauthorized person or organization attempting to cash the check and fraudulently withdraw money from the payer’s bank account.
Detailed explanation-3: -The collecting banker is the one who undertakes the collection of the drafts, bills, pay orders, transfer cheques, etc., on behalf of the customer. The paying banker gets protection under the Negotiable Instrument Act section 85, and the collecting banker gets protection under section 131.