Multiple choice

A cheque of Rs. 5000 was issued by X at 3.40 p.m. in favour of Y, who being a very respected customer of the bank, obtained the payment at around 3.50 p.m. after the business hours. X comes at 4.50 p.m. and gives instructions to the bank to stop the payment.

  1. Stop payment instruction cannot be accepted after business hours

  2. Cheque has already been paid, due to which the stop payment cannot be accepted

  3. Bank is liable for the payment made after the business hours

  4. Bank is not liable as the payment has been made before close of the bank, although not in business hours
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Banks are not liable for the transactions done in the working hours, however, in the given case, the transaction was made after working hours and banks are not allowed to do cash related transactions during extended working hours (generally one hour). Thus, in this case bank is liable for the payment made after the business hours.

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