State whether the following statements are True or False with reasons: (4) A banker allows his customer, funds before clearance of cheque. This will not amount to creation of debt.
CS Professional · Banking - Law and Practice · PYQS · June 2021
State whether the following statements are True or False with reasons: (4) A banker allows his customer, funds before clearance of cheque. This will not amount to creation of debt.
Answer & Explanation:
False - When a customer deposit a cheque in his/her bank account, Banker will credit customer's account in the same day and the customer after looking into funds in his/her account withdrew money and if the cheque become dishonored it will amount to creation of debt.
Topics: Banking Operations
Related Questions in this Topic
- X maintains a balance of ₹ 10,000 in his Savings Account with a Bank and owes ₹ 5,000 to the Bank as overdraft in anothe...
- In a Current Account of a partnership firm consisting of two partners, one partner died. The son of the deceased partner...
- Give your decision on the following cases with reasons: Mr. Pyarelal a Saving Bank Account holder of a branch had given ...
- Give your decision on the following cases with reasons: Mr. Agassi is a trustee for M/s Nadal with a substantive balance...
- Explain in brief the following: Marginal Cost of Funds Based Lending Rate (MCLR).