Course Code: FM-306 Lesson: 1 Author: Dr. S.S. Kundu Vetter: Dr. B.S. Bodla NEGOTIABLE INSTRUMENTS ACT, 1881 STRUCTURE 1.0 1.1 1.2 1.3 1.4 1.5 Objectives Introduction Meaning of Negotiable Instruments Characteristics of a negotiable instrument Presumptions as to negotiable instrument Types of negotiable Instrument 1.5.1 Promissory notes 1.5.2 Bill of exchange 1.5.3 Cheques 1.5.4 Hundis 1.6 Parties to negotiable instruments 1.6.1 Parties to Bill of Exchange 1.6.2 Parties to a Promissory Note 1.6.3
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Negotiable Instruments | | | | | Definition | | | | A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time. Under section 13 of the Negotiable Instruments Act, “a negotiable instrument” means a promissory note, bills of exchange or chequ payable either to order or to bearer”. According to Judge Willis: “A negotiable instrument is one the property in which is acquired by every person who takes it bonafide
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consolidation and modification, to advise the newly created legislative council on matters of law, and to integrate and organize the scattered, conflicting and incoherent system of regulation into a general system of codes, was taken by the charter act of 1833 when it made provisions in section 53 for the appointment of a law commission in India. The section in question recited that it was “ expedient that , subject to such special arrangements as local circumstances may require , a general system
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future date. In such a situation, normally the firm relies on the party to make payment on the due date. But in some cases, to avoid any possibility of delay or default, an instrument of credit is used through which the buyer assures the seller that the payment shall be made according to the agreed conditions. In India, instruments of credit have been in use since time immemorial and are popularly known as Hundies. The hundies are written in Indian languages and have a large variety (refer box1). Box
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Progress. Central Bank – Evolution – Functions – Credit Control Measures Money market – Indian money market – Components – Characteristics of developed and under developed money market. Banker and Customer – General and Special relationships – Negotiable instruments – Features – Types of accounts – Types of customers – Pass Book – Cheque – Features – Crossing – Endorsements Paying banker – Duties – Holder in due course – Payment in the due course – Protection – Collecting banker – Duties – Protection
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The banker is called as: a) Collecting and Paying banker b) Holder in due course c) Holder for value d) Reimbursement banker (c) 6) As per the provisions of NI Act,1881 a banker gets protection for payment of a cheque only if it is a : a) Holder in due course b) Payment in due course c) Holder for value d) All of the above (b) 7) At a Railway station, you withdraw cash from
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Banking Awareness Study Material Shared by Rajesh Kumar and Bhavya Vadudevan www.Gr8AmbitionZ.com your A to Z competitive exam guide Page 1 Banking Awareness Study Material - powered by Gr8AmbitionZ.com Indian Banking Structure a) b) c) d) e) Central Bank (RBI) Specialised Banks Commercial Banks Development Banks Co-operative Banks Specialised Banks: NABARD: National Bank for Agriculture and Rural Development. This bank is meant for financing the agriculture as well as rural
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conferred with some benefits etc., the position of such person in such like situations is being discussed below. THE POSITION OF A MINOR Who is a minor ? A person who has not attained the age of majority is a minor. Section 3 of the Indian Majority Act, 1875 provides about the age of majority. It states that a person is deemed to have attained the age of majority when he completes the age of 18 years, except in case of a person of whose person or property a guardian has been appointed by the Court
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Internship Report ON GENERAL BANKING AND MANAGEMENT INFORMATION SYSTEM (A STUDY ON UNITED COMMERCIAL BANK LIMITED) Course Code: BAN- 400 Course Title: Internship & Viva Prepared To: Md. Abdul Hamid Lecturer Businesss administration department
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cheque, draft, order or otherwise. ……………. from The Bank Company Act, 1991. Banker: ➢ Section-3 of NI Act. states that Banker means “ a person transacting the business of accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheque, draft, order or otherwise and includes any post office savings Bank”. ➢ According to Bill of exchange Act of 1882 Banker includes a body of persons
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