The paying banker is protected under following SECTION for payment of cheque with forged signature of the drawer.

Related MCQs

• Which of the following is/are false about Dishonour of Cheque? A) Section 138 defines Dishonour of cheque for insufficiency, etc., of funds in the account. B) Such cheque has been presented to the bank within a period of twelve months from the date on which it is drawn or within the period of its validity, whichever is earlier C) Imprisonment for such offence may be extended for period of five year D) Section 138 apply unless – the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.
• The paying banker should pay the cheque when there is restriction imposed on the payment by the drawer or by the law.
• The endorsement on the cheque is fictitious and the collecting banker failed to check it the cheque is paid by the paying banker
• The paying banker is expected to pay the cheque to the genuine payee as per the direction of the drawer.
• In case of sufficiency of funds in the account of the drawer which can be properly used to pay the cheque, the banker must pay the cheque when required to do so.
• The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision allowing a court trying an offence related to cheque bouncing, to direct the drawer (person who writes the cheque) to pay interim compensation to the complainant. The interim compensation will not exceed ___% of the cheque amount?
• The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the loss of
• The paying banker can get protection for a materially altered cheque provided __.
• In case collection of a bank draft the collecting banker is protected against conversion under _____ section of Negotiable Instruments Act 1881.
• A banker should not refuse payment of a cheque if ________.