Q. There is legal obligation for a banker to collect the bills of exchange for its customer.
✅ Correct Answer: (B)
False
Banking and Finance 3 MCQs and Notes
Q. Holder is an individual who has lawfully received possession of a Commercial Paper, such as a cheque and who is entitled for payment on such instrument.
✅ Correct Answer: (A)
True
Q. In case a collecting banker has realized the cheque, he should pay the interest to the customer as per his (customer’s) direction.
✅ Correct Answer: (A)
True
Q. The collecting banker is bound to show due care and carefulness in the collection of cheques presented to him.
✅ Correct Answer: (A)
True
Q. When the cheque is dishonored, the collecting banker is not bound to give notice of the same to his customer within a reasonable time.
✅ Correct Answer: (B)
False
Q. In case of wrongful dishonour of a cheque by the banker
✅ Correct Answer: (C)
the remedy for holder is against drawer
Q. The endorsement on the cheque is fictitious and the collecting banker failed to check it the cheque is paid by the paying banker
✅ Correct Answer: (B)
paying banker is protected
Q. To get protection under Sec 131 of NI Act collecting banker should collect the cheque
✅ Correct Answer: (C)
1 or 2
Q. A Collecting banker is given the statutory protection only when he acts as...
✅ Correct Answer: (D)
An agent
Q. Collecting a cheque payable to the firm to the private account of a partner without enquiry constitutes.......
✅ Correct Answer: (C)
Negligence connected with immediate collection of a cheque