A cheque refers to a note (promissory) that is payable at a time when the payee requests it.Dishonor of the cheque is a condition in which the bank refuses to pay the amount of cheque to the payee.If the bank refuses to pay the amount to the payee, the cheque is said to be dishonored.A cheque is said to be honored if the banks give the amount to the payee.The drawer writes the various details including the monetary amount, date, and a payee on the cheque, and signs it, ordering their bank, known as the drawee, to pay that person or company the amount of money stated.The person writing the cheque, known as the drawer, has a transaction banking account where their money is held. A cheque is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. ![]() Both the statements are correct and the reason for the assertion is also valid. ![]() The cheque is dishonored by non-payment and the Cheque is always payable on demand. The objective of the Contract Act is to ensure that the rights and obligations arising out of a contract are honored and that legal remedies are made available to an aggrieved party against the party failing to honor his part of the agreement.free consent of parties to the contracts, competent to contract, for a lawful consideration, and with a lawful object. According to Section 10 of the Indian Contract Act, 1872 there are mainly four conditions that have to be satisfied to form a valid contract, i.e.To ensure a sound and balanced growth of the banking business.To introduce specific legislation for the banking business in India.The Banking Regulation Act enacted in February 1949 has the following objectives: It can deal in derivative, repo and reverse repo.It can buy or sell government securities.It can provide advances to the central government and state governments.It can provide loans to banks and state financial corporations.It can purchase foreign exchange from banks and sell it to them.It can purchase and discount bills of exchangefrom commercial banks.The RBI can accept deposits from the central and state governments without interest.Section 17 of the Act defines the manner in which the RBI(the central bank of India) can conduct business.This act along with the Companies Act, which was amended in 1936, was meant to provide a framework for the supervision of banking firms in India.Reserve Bank of India Act, 1934 is the legislative act under the Reserve Bank of India was formed. ![]()
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