Multiple choice

Bank B makes payment of the following cheques. For which of these will the bank not get protection?

  1. A cheque with one endorsement as forged endorsement

  2. A bearer cheque bearing an endorsement in favour of X while payment is received by Y without endorsement from X

  3. A cheque the amount of which has been filled by the payee and was left blank by the drawer

  4. A cheque having amount in words as Rupees five thousand while amount in figures was left blank
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

If the amount is written in words only and NOT in figures, then NO payment will be made because it would be inchoate. This means that a person writes a check with the following: Figures: _________ (Left Blank) Words: Rupees Five Thousand Only No payment would be made (Section 20 NI Act)

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