Bank's refusal to pay the amount of cheque to the payee is _____________.

Honour of cheque

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Dishonour of cheque

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Endorsement of cheque

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Retirement of cheque

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Solution

The correct option is B Dishonour of cheque
Cheque is said to be dishonoured when the bank does not clear the payment against the cheque issued. It is a situation where the bank refuses to make the payment due to improper details on the cheque or insufficient bank balance.

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Similar questions

A Bank is under a statutory obligation to honour its consumer’s cheques according to which of the following acts?

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