Multiple choice

A customer is bound to inform the ____________ about lost cheque leaves.

  1. payee

  2. endorse

  3. collecting bank

  4. drawee Bank

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In respect of cheques lost in transit or in the clearing process or at the paying branch, the collecting branch should immediately bring the same to the notice of the account holder, so that the account holder can inform the drawer to record stop payment and can also take care that other cheques issued by him are not dishonoured due to non-credit of the amount of the lost cheques. If the cheque has been lost by the individual, he/she can inform the drawee bank about the same.