Multiple choice

Which of the following is now a punishable offence by a bank account holder?

  1. Issuing a cheque without signature

  2. If a cheque drawn by him is dishoured for insufficiency of funds in his account

  3. If cheque is not crossed

  4. If apost- dated cheque is issued
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under Section 138 of the Negotiable Instruments Act, 1881, issuing a cheque that gets dishonored due to insufficient funds is a criminal offense punishable by imprisonment up to 2 years and/or fine. This law protects the credibility of cheques as a payment instrument. Missing signature, uncrossed cheques, or post-dated cheques have different legal implications but are not criminal offenses in the same way.

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