Multiple choice

An order cheque of Rs. 55000 is issued by Mr. X in his account favouring M (a minor), who approaches the bank to cash the payment.

  1. Cheque being in favour of a minor cannot be paid

  2. Cheque shall be paid like in other cases

  3. Cheque will be paid if the minor is accompanied by his guardian

  4. Cheque shall be paid, if the guardian provides guarantee for the payment
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cheque shall be paid, like in other cases, as minors can withdraw the amount. However, minor account holder cannot issue/draw cheque favouring a third party. 

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