GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is called nullifying of the cheque
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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 return of the cheque unpaid
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Detailed explanation-1: -If the bank refuses to pay the amount mentioned on the cheque, the cheque is dishonoured. The payee must inform the payer of the dishonoured cheque and ask them to inquire about its reason. If the payer believes the cheque will be honoured a second time, they can resubmit it within three months after the date on it.
Detailed explanation-2: -A cheque bounce is an offence under Section 138 of the Negotiable Instruments Act, 1881 (“Act”) punishable with a fine which can extend to twice the amount of the cheque or imprisonment for a term not more than two years or both.
Detailed explanation-3: -A bounced check is slang for a check that cannot be processed because the account holder has non-sufficient funds (NSF) available for use. Banks return, or “bounce", these checks, also known as rubber checks, rather than honoring them, and banks charge the check writers NSF fees.