7 When can bank Refuse a payment of cheque

Question 1

Obvious Reasons (side of drawer):

Answer 1

1. When the Funds to credit of drawer are NOT SUFFICIENT to make a payment of the cheque
2. When the drawer has CLOSED HIS ACCOUNT before the presentation of the cheque for payment
3. When the bank comes to know that the drawer has become INSOLVENT or INSANE or is DEAD
4. When the drawer has STOPPED PAYMENT

Question 2

Maybe forgery:

Answer 2

1. When the SIGNATURE of the drawer on the cheque does NOT tally with his SPECIMENT SIGNATURES in the records of the bank.
2. When the amount in FIGURES and WORDS DIFFER.
3. When the cheque is ALTERED and ALTERATIONS are not signed.
4. When the cheque is MUTILATED.

Question 3

Technical issues:

Answer 3

1. When the cheque is POSTDATED and is presented for payment BEFORE the date it bears
2. When the cheque is STALE, more than THREE MONTH
3. When the cheque is CROSSED and is not presented through a bank
4. When a check is not duly presented, It is presented outside BANKING HOURS.