Study the image. Explain any five conditions for the refusal of the same by the bank.

The image shows a cheque of State Bank of India for ₹5,000. A bank can refuse payment or dishonour such a cheque under the following circumstances:

1. Insufficient Funds — If the funds to the credit of the drawer are not sufficient to make payment of the cheque (i.e., the drawer's account does not have ₹5,000), the bank will dishonour the cheque.

2. Cheque is Stale — If the cheque is more than three months old from the date written on it. Such a cheque is called a 'stale cheque' and the bank will refuse to pay.

3. Stopped Payment — If the drawer has stopped payment of the cheque by giving a written notice to the bank, the bank will refuse to honour it.

4. Signature Mismatch — If the signature of the drawer on the cheque does not tally with the specimen signature kept in the bank's records, the bank can refuse payment.

5. Difference in Amount — If the amount written in figures (₹5,000) and the amount written in words ('Five Thousand Only') differ, the bank will dishonour the cheque.