Banking · Negotiable Instruments Act
A customer's cheque is stolen and the payee's name is fraudulently altered (the alteration is not easily apparent). The Paying Banker pays the cheque in due course. Under Section 89 of the NI Act, 1881, the debit to the customer's account will be:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Restricted to only 50% of the amount under the principle of shared liability.
- 2For the full amount only if the customer ratifies the altered payment retrospectively.
- 3Disallowed completely, and the bank must reverse the debit entirely.
- 4For the full amount of the cheque, as the alteration was not apparent and the payment was made in due course.✓
Correct answer
For the full amount of the cheque, as the alteration was not apparent and the payment was made in due course.
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
Start Free Mock Test →Preparing for Banking?
Practice full-length 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