Banking · Negotiable Instruments Act
A cheque is crossed 'Account Payee Only'. The Paying Banker receives the cheque for payment through a Collecting Banker. What is the Paying Banker's statutory duty regarding the crossing?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The Paying Banker must ensure the payee is an account holder in their own branch.
- 2The Paying Banker has no direct duty regarding the 'Account Payee Only' crossing; the primary duty rests with the Collecting Banker.✓
- 3The Paying Banker must ensure the Collecting Banker is the bank named in the crossing.
- 4The Paying Banker must ensure the money is credited only to the account of the person named as payee.
Correct answer
The Paying Banker has no direct duty regarding the 'Account Payee Only' crossing; the primary duty rests with the Collecting Banker.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Preparing for Banking?
Practice full-length Banking mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Negotiable Instruments Act MCQs →Want more practice questions on Negotiable Instruments Act?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Negotiable Instruments Act