Question

A collecting banker is given statutory
protection only when he collects a
crossed cheque is correct or incorect​

Answer 1

Answer:

Statutory protection to collecting banker: A collecting banker is protected against the risk of conversion as follows according to section 131 a banker who has in good faith and without negligence received payment for customer of a cheque crossed generally or specially to himself shall not, in case

Answer 2

The statement is Correct.

• The protection is granted under Section 131 in The Negotiable Instruments Act, 1881
• It applies to the banker who, in due diligence accepted remittance from a client on a check that was crossed to himself essentially or particularly.
• If the title to the check turns out to be invalid, he is not liable to the real owner of the check just because he accepted the money.
• Only in cases of crossed checks is the protection available. If there are any open or uncrossed checks, it is not available.

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