Question

As per RBI guidelines, what is the penalty for a person whose cheque is dishonoured for insufficiency of funds under the Negotiable Instruments Act?

A Fine up to ₹25,000 only
B Imprisonment up to 1 year or fine only
C Imprisonment up to 2 years or fine up to twice the cheque amount or both
D Imprisonment up to 6 months only
E Ban from holding a bank account for 5 years
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