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    Question

    Issuing a cheque without sufficient funds attracts

    penalty under Section 138 of the Negotiable Instruments Act. What is the maximum punishment?
    A Only fine of тВ╣10,000 Correct Answer Incorrect Answer
    B Civil penalty without jail Correct Answer Incorrect Answer
    C Imprisonment up to 2 years or fine up to twice the cheque amount Correct Answer Incorrect Answer
    D Ban on opening new accounts Correct Answer Incorrect Answer
    E 6 months imprisonment only Correct Answer Incorrect Answer

    Solution

    Cheque dishonour due to insufficient funds can lead to up to 2 years imprisonment, a fine up to twice the cheque amount, or both.

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