Question

State whether the following statement is True or False.
A bill can’t be deposited into a bank for collection.

Options

• True

• False

Answer 1

False

 

Explanation: The drawer of a bill can send the bill to its bank with clear instructions to retain the bill and realise the amount of the bill on its due date. This is termed a bill sent to the bank for collection. Also, in case of bills discounted with a bank, the bank becomes the payee and is entitled to receive the amount on the due date.