When cheque is not encashed by the bank, it is said that the cheque is .

honoured

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endorsed

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omitted

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dishonoured

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Solution

The correct option is D dishonoured
The dishonour of cheque is a condition in which bank refuses to pay the amount of cheque to the payee. Whenever the cheque is dishonoured, the drawee bank instantly issues a 'Cheque Return Memo' to the payee banker specifying the reasons for dishonour.

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When cheque is not paid by the bank, it is called?

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