Bank's refusal to pay the amount of cheque to the payee is _____________.
Honour of cheque
Dishonour of cheque
Endorsement of cheque
Retirement of cheque
A
Retirement of cheque
B
Honour of cheque
C
Dishonour of cheque
D
Endorsement of cheque
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Solution
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Cheque is said to be dishonoured when the bank does not clear the payment against the cheque issued. It is a situation where the bank refuses to make the payment due to improper details on the cheque or insufficient bank balance.
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