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Section 138 of the Negotiable Instruments Act 1881 deals with:
ACrossing of cheques
BEndorsement of promissory notes
CDishonour of cheques
DDefinition of bill of exchange
Answer & Solution
Correct answer: C. Dishonour of cheques
1. Per OCR section heading: "4.5 Dishonour of Cheques (Section 138)".
2. Sec 138 criminalises cheque-bouncing for insufficient funds.
3. Punishment: imprisonment up to 2 years or fine up to twice the cheque amount.
_Source: ICMAI BoS CMA Foundation Paper 1 (FBLC) — Paper1_07042026.pdf, Module 4 §4.5 (page 101)_