Multiple choice

In case of bounce/dishonor of cheque on account of insufficiency of funds, the drawer is punishable by

  1. fine up to double the amount of cheque and imprisonment up to one year

  2. fine up to equal to the amount of cheque and imprisonment up to one year

  3. fine up to double the amount of cheque and imprisonment up to two years

  4. fine up to equal to the amount of cheque and imprisonment up to two years
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Imprisonment and fine to drawer: The penalty to a drawer can include imprisonment for a period that may extend up to two years and also a fine up to double the amount of the cheque.

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