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Among the given, which of the following is/are not mentioned under section 126 of Negotiable instrument act 1881?
  • a)
    when a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a banker
  • b)
    when a cheque is crossed specially, the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed or his agent for collection.
  • c)
    a banker paying a cheque crossed specially otherwise than to a banker to whom it is crossed or his agent for collection shall be liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.
  • d)
    both a and b
Correct answer is option 'C'. Can you explain this answer?
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Among the given, which of the following is/are not mentioned under sec...
  • According to the Section 126, when a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a banker.
  • According to Section 126, when a cheque is crossed specially, the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed or his agent for collection.
  • According to Section 129 of the Act, a banker paying a cheque crossed specially otherwise than to a banker to whom it is crossed or his agent for collection shall be liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.
  • Hence, among the given, the statement given is not stated as per section 126.
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Among the given, which of the following is/are not mentioned under sec...
Understanding Section 126 of the Negotiable Instruments Act, 1881
Section 126 of the Negotiable Instruments Act, 1881, deals with the crossing of cheques and the obligations of bankers concerning such cheques. Let's break down the options provided and clarify why option 'C' is correct.
Key Points of Section 126:
- Crossed Cheques:
- When a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a banker.
- This means that the cheque can only be paid through a bank, ensuring a level of security in the transaction.
- Special Crossing:
- When a cheque is crossed specially, it should only be paid to the banker to whom it is crossed or their agent for collection.
- This limits payment to specific entities, enhancing security against fraud.
Liability of the Banker:
- Liability for Improper Payment:
- A banker who pays a cheque crossed specially, but not to the banker to whom it is crossed, can be held liable to the true owner of the cheque for any loss incurred.
- This provision is crucial as it protects the true owner from unauthorized payments.
Why Option 'C' is Not Mentioned Under Section 126:
- The statement in option 'C' suggests that a banker may be liable for any loss incurred due to improper payment of a specially crossed cheque.
- However, this specific liability condition is not explicitly stated in Section 126. Instead, the section focuses on the rules of payment and the duties imposed on bankers regarding crossed cheques.
In conclusion, while options 'A' and 'B' summarize the content of Section 126 accurately, option 'C' introduces a liability clause that is not directly mentioned in that section, making it the correct answer.
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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?

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 is a facultative endorsement?

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 is the purpose of adding "A/c Payee" or "Payees A/c only" to the crossing of a cheque?

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Among the given, which of the following is/are not mentioned under section 126 of Negotiable instrument act 1881?a)when a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a bankerb)when a cheque is crossed specially, the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed or his agent for collection.c)a banker paying a cheque crossed specially otherwise than to a banker to whom it is crossed or his agent for collection shall be liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.d)both a and bCorrect answer is option 'C'. Can you explain this answer?
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Among the given, which of the following is/are not mentioned under section 126 of Negotiable instrument act 1881?a)when a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a bankerb)when a cheque is crossed specially, the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed or his agent for collection.c)a banker paying a cheque crossed specially otherwise than to a banker to whom it is crossed or his agent for collection shall be liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.d)both a and bCorrect answer is option 'C'. Can you explain this answer? for Bank Exams 2024 is part of Bank Exams preparation. The Question and answers have been prepared according to the Bank Exams exam syllabus. Information about Among the given, which of the following is/are not mentioned under section 126 of Negotiable instrument act 1881?a)when a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a bankerb)when a cheque is crossed specially, the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed or his agent for collection.c)a banker paying a cheque crossed specially otherwise than to a banker to whom it is crossed or his agent for collection shall be liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.d)both a and bCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Bank Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Among the given, which of the following is/are not mentioned under section 126 of Negotiable instrument act 1881?a)when a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a bankerb)when a cheque is crossed specially, the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed or his agent for collection.c)a banker paying a cheque crossed specially otherwise than to a banker to whom it is crossed or his agent for collection shall be liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.d)both a and bCorrect answer is option 'C'. Can you explain this answer?.
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