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Direction: The payment and collection of cheques and other negotiable instruments are crucial aspects of modern business transactions. Cheques, promissory notes, bills of exchange, and other negotiable instruments are used to facilitate payments between parties. When a cheque is issued, it is a promise by the issuer to pay a specified amount to the payee on demand or at a future date. The payee can deposit the cheque in their bank account for collection, and the bank will process it by verifying the signature and ensuring that there are sufficient funds in the issuers account. If the cheque is valid and funds are available, the bank will credit the payees account. In cases where the cheque bounces, the bank will not honor it and return it to the payees bank. To prevent fraudulent activities, banks have implemented various security measures and procedures for the payment and collection of negotiable instruments.Q. What should a banker do if a cheque contains material alterations?a)Pay the cheque without further authenticationb)Authenticate the alteration under the full signature of the drawerc)Reject the cheque and ask the drawer to issue a new oned)Endorse the cheque as "Mutilation guaranteed"Correct answer is option 'B'. Can you explain this answer? for Banking Exams 2024 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about Direction: The payment and collection of cheques and other negotiable instruments are crucial aspects of modern business transactions. Cheques, promissory notes, bills of exchange, and other negotiable instruments are used to facilitate payments between parties. When a cheque is issued, it is a promise by the issuer to pay a specified amount to the payee on demand or at a future date. The payee can deposit the cheque in their bank account for collection, and the bank will process it by verifying the signature and ensuring that there are sufficient funds in the issuers account. If the cheque is valid and funds are available, the bank will credit the payees account. In cases where the cheque bounces, the bank will not honor it and return it to the payees bank. To prevent fraudulent activities, banks have implemented various security measures and procedures for the payment and collection of negotiable instruments.Q. What should a banker do if a cheque contains material alterations?a)Pay the cheque without further authenticationb)Authenticate the alteration under the full signature of the drawerc)Reject the cheque and ask the drawer to issue a new oned)Endorse the cheque as "Mutilation guaranteed"Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Banking Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: The payment and collection of cheques and other negotiable instruments are crucial aspects of modern business transactions. Cheques, promissory notes, bills of exchange, and other negotiable instruments are used to facilitate payments between parties. When a cheque is issued, it is a promise by the issuer to pay a specified amount to the payee on demand or at a future date. The payee can deposit the cheque in their bank account for collection, and the bank will process it by verifying the signature and ensuring that there are sufficient funds in the issuers account. If the cheque is valid and funds are available, the bank will credit the payees account. In cases where the cheque bounces, the bank will not honor it and return it to the payees bank. To prevent fraudulent activities, banks have implemented various security measures and procedures for the payment and collection of negotiable instruments.Q. What should a banker do if a cheque contains material alterations?a)Pay the cheque without further authenticationb)Authenticate the alteration under the full signature of the drawerc)Reject the cheque and ask the drawer to issue a new oned)Endorse the cheque as "Mutilation guaranteed"Correct answer is option 'B'. Can you explain this answer?.

Solutions for Direction: The payment and collection of cheques and other negotiable instruments are crucial aspects of modern business transactions. Cheques, promissory notes, bills of exchange, and other negotiable instruments are used to facilitate payments between parties. When a cheque is issued, it is a promise by the issuer to pay a specified amount to the payee on demand or at a future date. The payee can deposit the cheque in their bank account for collection, and the bank will process it by verifying the signature and ensuring that there are sufficient funds in the issuers account. If the cheque is valid and funds are available, the bank will credit the payees account. In cases where the cheque bounces, the bank will not honor it and return it to the payees bank. To prevent fraudulent activities, banks have implemented various security measures and procedures for the payment and collection of negotiable instruments.Q. What should a banker do if a cheque contains material alterations?a)Pay the cheque without further authenticationb)Authenticate the alteration under the full signature of the drawerc)Reject the cheque and ask the drawer to issue a new oned)Endorse the cheque as "Mutilation guaranteed"Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Banking Exams. Download more important topics, notes, lectures and mock test series for Banking Exams Exam by signing up for free.

Here you can find the meaning of Direction: The payment and collection of cheques and other negotiable instruments are crucial aspects of modern business transactions. Cheques, promissory notes, bills of exchange, and other negotiable instruments are used to facilitate payments between parties. When a cheque is issued, it is a promise by the issuer to pay a specified amount to the payee on demand or at a future date. The payee can deposit the cheque in their bank account for collection, and the bank will process it by verifying the signature and ensuring that there are sufficient funds in the issuers account. If the cheque is valid and funds are available, the bank will credit the payees account. In cases where the cheque bounces, the bank will not honor it and return it to the payees bank. To prevent fraudulent activities, banks have implemented various security measures and procedures for the payment and collection of negotiable instruments.Q. What should a banker do if a cheque contains material alterations?a)Pay the cheque without further authenticationb)Authenticate the alteration under the full signature of the drawerc)Reject the cheque and ask the drawer to issue a new oned)Endorse the cheque as "Mutilation guaranteed"Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: The payment and collection of cheques and other negotiable instruments are crucial aspects of modern business transactions. Cheques, promissory notes, bills of exchange, and other negotiable instruments are used to facilitate payments between parties. When a cheque is issued, it is a promise by the issuer to pay a specified amount to the payee on demand or at a future date. The payee can deposit the cheque in their bank account for collection, and the bank will process it by verifying the signature and ensuring that there are sufficient funds in the issuers account. If the cheque is valid and funds are available, the bank will credit the payees account. In cases where the cheque bounces, the bank will not honor it and return it to the payees bank. To prevent fraudulent activities, banks have implemented various security measures and procedures for the payment and collection of negotiable instruments.Q. What should a banker do if a cheque contains material alterations?a)Pay the cheque without further authenticationb)Authenticate the alteration under the full signature of the drawerc)Reject the cheque and ask the drawer to issue a new oned)Endorse the cheque as "Mutilation guaranteed"Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Direction: The payment and collection of cheques and other negotiable instruments are crucial aspects of modern business transactions. Cheques, promissory notes, bills of exchange, and other negotiable instruments are used to facilitate payments between parties. When a cheque is issued, it is a promise by the issuer to pay a specified amount to the payee on demand or at a future date. The payee can deposit the cheque in their bank account for collection, and the bank will process it by verifying the signature and ensuring that there are sufficient funds in the issuers account. If the cheque is valid and funds are available, the bank will credit the payees account. In cases where the cheque bounces, the bank will not honor it and return it to the payees bank. To prevent fraudulent activities, banks have implemented various security measures and procedures for the payment and collection of negotiable instruments.Q. What should a banker do if a cheque contains material alterations?a)Pay the cheque without further authenticationb)Authenticate the alteration under the full signature of the drawerc)Reject the cheque and ask the drawer to issue a new oned)Endorse the cheque as "Mutilation guaranteed"Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Direction: The payment and collection of cheques and other negotiable instruments are crucial aspects of modern business transactions. Cheques, promissory notes, bills of exchange, and other negotiable instruments are used to facilitate payments between parties. When a cheque is issued, it is a promise by the issuer to pay a specified amount to the payee on demand or at a future date. The payee can deposit the cheque in their bank account for collection, and the bank will process it by verifying the signature and ensuring that there are sufficient funds in the issuers account. If the cheque is valid and funds are available, the bank will credit the payees account. In cases where the cheque bounces, the bank will not honor it and return it to the payees bank. To prevent fraudulent activities, banks have implemented various security measures and procedures for the payment and collection of negotiable instruments.Q. What should a banker do if a cheque contains material alterations?a)Pay the cheque without further authenticationb)Authenticate the alteration under the full signature of the drawerc)Reject the cheque and ask the drawer to issue a new oned)Endorse the cheque as "Mutilation guaranteed"Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: The payment and collection of cheques and other negotiable instruments are crucial aspects of modern business transactions. Cheques, promissory notes, bills of exchange, and other negotiable instruments are used to facilitate payments between parties. When a cheque is issued, it is a promise by the issuer to pay a specified amount to the payee on demand or at a future date. The payee can deposit the cheque in their bank account for collection, and the bank will process it by verifying the signature and ensuring that there are sufficient funds in the issuers account. If the cheque is valid and funds are available, the bank will credit the payees account. In cases where the cheque bounces, the bank will not honor it and return it to the payees bank. To prevent fraudulent activities, banks have implemented various security measures and procedures for the payment and collection of negotiable instruments.Q. What should a banker do if a cheque contains material alterations?a)Pay the cheque without further authenticationb)Authenticate the alteration under the full signature of the drawerc)Reject the cheque and ask the drawer to issue a new oned)Endorse the cheque as "Mutilation guaranteed"Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Banking Exams tests.