The endorsement on the cheque is fictitious and the collecting banker failed to check it the cheque is paid by the paying banker

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 can get protection for a materially altered cheque provided __.
• The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the loss of
• The paying banker is protected under following SECTION for payment of cheque with forged signature of the drawer.
• The paying banker is expected to pay the cheque to the genuine payee as per the direction of the drawer.
• The paying banker should pay the cheque when there is restriction imposed on the payment by the drawer or by the law.
• To get protection under Sec 131 of NI Act collecting banker should collect the cheque
• 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 case a collecting banker has realized the cheque, he should pay the interest to the customer as per his (customer’s) direction.
• 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.