CAIIB Paper 4: Banking Regulations and Business Laws (BRBL)

Q: Under Section 138 of the Negotiable Instruments Act, 1881, which statutory condition must be satisfied to initiate criminal proceedings for cheque bounce due to insufficient funds?

Correct Answer: Option A (The cheque must have been presented within 6 months or its validity, and a statutory legal notice sent within 30 days of dishonour giving 15 days to pay). Section 138 NI Act mandates: Cheque presented within validity, legal notice in writing issued within 30 days of receiving bank dishonour memo, giving the drawer 15 days to pay. If unpaid, complaint is filed within 1 month.

1 Questions (Mod D) 4 Modules

Practice CAIIB Paper 4: Banking Regulations and Business Laws (BRBL) - Module D (Commercial & Other Laws with Reference to Banking Operations) multiple choice questions with detailed step-by-step explanations.

Quick Mode: Module Tiles Timed Mock Test

D Active Module 1 Questions