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In India, Can I write a multi-city cheque to myself (Self cheque) and present to non-home branch to withdraw money? If yes, Can bank deny this transaction? eg: SBI policy on MCC says:

Cash Payment at Non-Home Branch-Maximum limit

As prevailing time to time. Presently, it is as under:

i) ‘P’ segment: Rs.50000/- for self. No cash payment to third parties

Also from their website:

The MCC facility is to be used only for genuine transactions / bonafide remittances. No cash payments will be made to third parties at other branches.

What is "genuine transactions / bonafide remittances"?

Moreover, what does "No cash payment to third parties" means? Suppose someone gave me a cheque and I don't have an account in that bank (or I am out of town, so I go to a non-home branch), how can I get the money in cash?

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In India, Can I write a multi-city cheque to myself (Self cheque) and present to non-home branch to withdraw money? If yes, Can bank deny this transaction?

Yes you can. There are limitations on the amount advised from time to time.

What is "genuine transactions / bonafide remittances"?

The multi-city cheque were created / issued to ease the clearing time. Previously outstation cheques would take max of 1 month by law. having a Multi-City cheque reduces this to max of 3 days. So what the clause says is one should use MCC to make genuine payments for parties outside your city. These should not be used as conduits for money laundering activities.

No cash payment to third parties

It means cash payment is not given to others except to account holder in non-home branch. A 3rd party can withdraw from home branch.

Suppose someone gave me a cheque and I don't have an account in that bank (or I am out of town, so I go to a non-home branch), how can I get the money in cash?

You can't. Generally I have seen that this can be en-cashed in the same city and not necessarily the same branch. However its been sometime when I have done this. Best is deposit this into your Bank or have payer initiate an IMPS/NEFT transfer.

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