Question

When a cheque is dishonoured in India it is called ____________.

• A. stale cheque
• B. overdue cheque
• C. dishonoured cheque
• D. expired cheque.

Answer 1

The correct option is C dishonoured cheque

Normally when the cheque deposited by anybody for collection or presented for payment at the teller counter, the banker makes payment of the cheque subject to several conditions. When the cheque is returned by the banker for anyone or more reasons by the banker, it is known as dishonour and the cheque thus dishonoured is known as dishonoured cheque.