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HomeSBI POBanking AwarenessNegotiable Instruments Act › A cheque drawn in favour of a Karta may be colle…

A cheque drawn in favour of a Karta may be collected in the account of a:

ASHG
BHUF
CLLP
DNGO
Answer & Solution
Correct answer: B. HUF
1. Account payee cheques go only to the payee. 2. One case is expressly clarified as permitted. 3. The Karta's cheque may go to the Hindu Undivided Family account. _Source: Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Directions, 2025_
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