In case a collecting banker has realized the cheque, he should pay the interest to the customer as per his (customer’s) direction.

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 endorsement on the cheque is fictitious and the collecting banker failed to check it the cheque is paid by the paying banker
• 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.
• When the cheque is dishonored, the collecting banker is not bound to give notice of the same to his customer within a reasonable time.
• The paying banker is expected to pay the cheque to the genuine payee as per the direction of the drawer.
• 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?
• To get protection under Sec 131 of NI Act collecting banker should collect the cheque
• When banker received deposits from the customer, then the banker becomes -------------- of the customer.
• When banker received deposits from the customer, then the banker becomes -------------- of the customer.
• When customer's account overdrawn or when customer has taken loan from banker, then the customer.