_________ is a condition in which the bank refuses to pay the amount o
A. Dishonour of cheque
B. Insufficiency of Cheque
C. Bearer Cheque
D. Discount on Cheque
Right Answer is: A
• The term dishonour refers to the action of refusing to fulfil obligations or pay a charge.
• Dishonour of cheque: It is a condition in which the bank refuses to pay the amount of cheque to the payee. There can be several reasons for dishonour of cheque like cheque is overwritten, the name of the payee is absent or insufficient bank balance etc.