The paying banker is expected to pay the cheque to the genuine payee as per the direction 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.
• 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 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 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 is protected under following SECTION for payment of cheque with forged signature of the drawer.
• Which of the following is/are true about bill of exchange? A) A bill of exchange requires in its inception two parties. B) A bill of exchange or “draft” is a written order by the drawer to the drawee to pay money to the payee. C) Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date. D) Definition of ‘Bill of Exchange’ is mentioned in Section 6 of the Negotiable Instrument Act.
• In case a collecting banker has realized the cheque, he should pay the interest to the customer as per his (customer’s) direction.
• If cheque is crossed an account payee, this is direction of, ------------- to---------------.
• The paying banker can get protection for a materially altered cheque provided __.