The payment should be made when the cheques are presented for payment within a reasonable time after being drawn and during banking hours.

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 collecting banker is bound to show due care and carefulness in the collection of cheques presented to him.
• It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against current
• It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against current account.
• When the cheque is dishonored, the collecting banker is not bound to give notice of the same to his customer within a reasonable time.
• In Shakuntla Sawhney v. Kaushalaya Sawhney,[(1979) 3 SCR 232]the Supreme Court has observed that “Finest hour of justice is the hour of compromise when parties after burying the hatchet, re-unite by a reasonable and just compromise” Whether this principle has been reflected in the ADR procedures mentioned in the Arbitration and Conciliation Act 1996?
• What happens if a crossed cheque is presented for payment?
• In case of collection of cheques and bills, the relationship of the banker with the customer is that of
• Bankers undertake the duty of collection of cheques and bills because......
• Which bank have given the instructions to the commercial banks regarding the immediate credit of outstation cheques?