The document discusses various types of negotiable instruments under Indian law, including promissory notes, bills of exchange, and cheques. It provides definitions for each type from the Negotiable Instruments Act 1881. Promissory notes contain an unconditional written promise to pay a certain sum of money. Bills of exchange contain an unconditional order to pay, directed from the drawer to the drawee. Cheques are a type of bill of exchange that are always drawn on a bank and payable on demand. The document outlines the essential elements and characteristics that make these instruments negotiable under law.
The document discusses the history and evolution of banking in India, key definitions related to banking, types of banking services, and the role and functions of commercial banks in India. It covers the establishment of the Reserve Bank of India, nationalization of banks, recommendations of the Narasimhan Committee on financial sector reforms, and how commercial banks promote economic development through capital formation, financing priority sectors, and expanding credit.
This document appears to be a capstone project report submitted as a partial requirement for a Master's degree in Business Administration. The report focuses on studying non-performing assets in the Indian private banking sector. It includes chapters on introduction, literature review, research methodology, data analysis, findings, suggestions and conclusions. The introduction provides background on banking sector reforms in India and defines key terms like non-performing assets, different types of banks and beneficiaries of the study. The literature review summarizes past research on causes of bank failures and levels of non-performing loans. The document appears to analyze non-performing assets of private banks in India and provides recommendations.
The document discusses various types of relationships between bankers and customers. It begins by defining a banker-customer relationship as one that is formed when a bank opens an account for a customer. It can then take various forms depending on the services provided, with the core ones being:
1. Debtor-creditor, where the bank is a debtor to the depositor.
2. Creditor-debtor, where the customer is a debtor to the bank as a borrower.
3. Other special relationships like trustee-beneficiary, bailee-bailor, lessor-lessee, and agent-principal can also form depending on additional services like safe deposit lockers.
Trust
The Insolvency and Bankruptcy Code 2016 - A Step ForwardSumedha Fiscal
The new bankruptcy law isn’t a “magic wand”. The main
challenge will be implementation-adequacy of infrastructure
and skilled pool of insolvency professionals, who will help
with the fast implementation of the law.
CII-Sumedha Fiscal has come out with this knowledge paper
with the objective to touch upon the key aspects of the Code
and lay bare the issues and challenges.
This document provides an overview of various banking operations including the roles of collecting and paying bankers, types of lending facilities, and non-performing assets. It discusses the duties of collecting bankers to carefully collect checks and notify customers of dishonored checks. Paying bankers must take precautions when honoring checks and can refuse payment for specific reasons. Banks offer various lending facilities like loans, cash credits, overdrafts and letters of credit. Non-performing assets are loans where borrowers do not repay principal or interest for a certain period.
The document provides an overview of key banking laws and regulations in India, including the Banking Regulation Act of 1949. It discusses the history and objectives of the Act, as well as some important amendments over time. The Act aims to safeguard depositors and control bank personnel while promoting the interests of the Indian economy. It establishes requirements for banks regarding minimum capital, licensing, branch operations, reserves, and more. The Act applies to nationalized, non-nationalized, and cooperative banks operating in India.
This document provides an overview of banking law and practice in India. It discusses various acts like the Negotiable Instruments Act, RBI Act, and Banking Regulation Act that govern banking services. It also outlines regulatory authorities, committees, and rating agencies involved in banking. The core topics covered include negotiable instruments, bills of exchange, promissory notes, cheques and key provisions of the Negotiable Instruments Act relating to these instruments.
The document discusses the history and evolution of banking in India, key definitions related to banking, types of banking services, and the role and functions of commercial banks in India. It covers the establishment of the Reserve Bank of India, nationalization of banks, recommendations of the Narasimhan Committee on financial sector reforms, and how commercial banks promote economic development through capital formation, financing priority sectors, and expanding credit.
This document appears to be a capstone project report submitted as a partial requirement for a Master's degree in Business Administration. The report focuses on studying non-performing assets in the Indian private banking sector. It includes chapters on introduction, literature review, research methodology, data analysis, findings, suggestions and conclusions. The introduction provides background on banking sector reforms in India and defines key terms like non-performing assets, different types of banks and beneficiaries of the study. The literature review summarizes past research on causes of bank failures and levels of non-performing loans. The document appears to analyze non-performing assets of private banks in India and provides recommendations.
The document discusses various types of relationships between bankers and customers. It begins by defining a banker-customer relationship as one that is formed when a bank opens an account for a customer. It can then take various forms depending on the services provided, with the core ones being:
1. Debtor-creditor, where the bank is a debtor to the depositor.
2. Creditor-debtor, where the customer is a debtor to the bank as a borrower.
3. Other special relationships like trustee-beneficiary, bailee-bailor, lessor-lessee, and agent-principal can also form depending on additional services like safe deposit lockers.
Trust
The Insolvency and Bankruptcy Code 2016 - A Step ForwardSumedha Fiscal
The new bankruptcy law isn’t a “magic wand”. The main
challenge will be implementation-adequacy of infrastructure
and skilled pool of insolvency professionals, who will help
with the fast implementation of the law.
CII-Sumedha Fiscal has come out with this knowledge paper
with the objective to touch upon the key aspects of the Code
and lay bare the issues and challenges.
This document provides an overview of various banking operations including the roles of collecting and paying bankers, types of lending facilities, and non-performing assets. It discusses the duties of collecting bankers to carefully collect checks and notify customers of dishonored checks. Paying bankers must take precautions when honoring checks and can refuse payment for specific reasons. Banks offer various lending facilities like loans, cash credits, overdrafts and letters of credit. Non-performing assets are loans where borrowers do not repay principal or interest for a certain period.
The document provides an overview of key banking laws and regulations in India, including the Banking Regulation Act of 1949. It discusses the history and objectives of the Act, as well as some important amendments over time. The Act aims to safeguard depositors and control bank personnel while promoting the interests of the Indian economy. It establishes requirements for banks regarding minimum capital, licensing, branch operations, reserves, and more. The Act applies to nationalized, non-nationalized, and cooperative banks operating in India.
This document provides an overview of banking law and practice in India. It discusses various acts like the Negotiable Instruments Act, RBI Act, and Banking Regulation Act that govern banking services. It also outlines regulatory authorities, committees, and rating agencies involved in banking. The core topics covered include negotiable instruments, bills of exchange, promissory notes, cheques and key provisions of the Negotiable Instruments Act relating to these instruments.
Project on customer awareness towards internet bankingLakshmy TM
This study aimed to analyze customer awareness of internet banking services provided by Dena Bank in Kottayam, India. A survey was conducted of 25 customers from September to November 2017. The results showed that 80% of respondents were aware of Dena Bank's internet banking services, though only 40% had used them. The most common reasons for non-use were fear of security (41.67%) and lack of information (33.33%). Of those who had used internet banking, the highest level of satisfaction was 38.48% reporting being highly satisfied, while 15.38% reported being dissatisfied. The study provided insight into customer awareness and perceptions around Dena Bank's internet banking offerings.
An agreement without consideration is voidnimishakhot
An agreement without consideration is void according to Indian contract law, with three exceptions: 1) if it is in writing, registered, and made due to natural love and affection between parties in a near relation, 2) if it is a promise to compensate someone who voluntarily did something for the promisor that they were not legally required to do, or 3) if it is a promise to pay a time barred debt. The document then discusses these exceptions in more detail through examples and case law citations.
The document discusses key concepts related to cheque processing and payment between banks. It defines a paying banker as the bank upon which a cheque or bill is drawn and pays it. A collecting banker collects the proceeds of a cheque on behalf of a customer from the paying banker. The document outlines precautions a paying banker takes before honoring a cheque, reasons for dishonoring a cheque, statutory protections, and duties of a collecting banker. It distinguishes a paying banker, who is required to pay cheques drawn on it, from a collecting banker, who collects cheque amounts from paying bankers on behalf of customers.
Phases of Nationalization Process in India, Objectives of Bank Nationalization, Achievements of Nationalized Banks, Problems and Constraints of Public Sector banks, Note on Non Performing Assets
This document provides a summary of Axis Bank, including its history, organization, markets, and products/services. Some key points:
- Axis Bank was established in 1994 as one of the first new private sector banks in India after reforms allowed private banks.
- It has over 4,000 branches and 12,000+ ATMs across India and 7 international offices.
- The bank offers a wide range of personal, corporate, SME, and investment banking products and services.
- Axis Bank aims to be a preferred financial solutions provider through customer focus, empowered employees, and technology.
The document discusses key concepts related to banking. It defines a banker as someone who accepts deposits that can be withdrawn by cheque and uses those deposits to make loans and investments. It also defines a customer as anyone who maintains a bank account. The relationship between banker and customer is described as debtor-creditor, principal-agent, and other specialized relationships like bailee-bailor and mortgagor-mortgagee. The document also outlines key obligations of bankers like honoring checks, maintaining confidentiality, and handling accounts of deceased customers.
This document defines key terms related to banking:
- A bank is an institution that receives funds from the public and lends money to those who need it. It is defined as an institution whose debts (deposits) are widely accepted in settlement of other people's debts.
- A banker is a person who conducts banking business. There is no precise definition but a banker acts as both a depository and financial agent for customers.
- Banking involves accepting deposits from the public for lending or investment, repayable on demand or otherwise, and allowing withdrawal by cheque or similar means.
,
modes of charging
,
modes of charging security
,
different modes of creating charge
,
essentials of pledge
,
documents required for pledge
,
liquid asset
,
different forms of liquid assets
,
supplies of liquid assets
,
demand of assets
Emerging Trends of Banking in India.pptxSumeshJohn5
The banking sector in India has undergone significant changes in recent decades due to economic reforms and advancements in digital technology. Key trends include a large increase in deposits and credit, widespread digitalization and electronic banking services, bank consolidation through mergers, and the adoption of universal banking models. New regulations have also led to new types of banks obtaining licenses while open banking initiatives like UPI have increased payment options. Growing non-performing assets, fraud prevention measures, and the implementation of international banking standards additionally reflect changes in the Indian banking system.
This document discusses various types of charges that can be created over different types of securities to secure loans. It defines mortgage, hypothecation, pledge, lien, assignment and personal guarantee. It explains key characteristics of different kinds of charges like fixed charge, floating charge and crystallization. It also summarizes different types of mortgages like simple mortgage, conditional sale, usufructuary mortgage and equitable mortgage.
The document discusses the history and evolution of banking in India from ancient times to modern times. It covers the origins of banking in India, the pre-independence and post-independence banking systems, nationalization of banks in 1969 and 1980, types of banks in India including commercial banks, development banks and cooperative banks, policies of liberalization in the 1990s, and the increasing globalization of the Indian banking sector. It also provides details about the Bank of India as an example of a major public sector bank.
The document summarizes the history of banking in India from the establishment of the earliest Indian bank in 1870 to the modern structure and regulation of the Indian financial system. It discusses the key events and institutions that shaped the development of banking in India, including the establishment of the Reserve Bank of India in 1934 and its nationalization in 1949. The summary also outlines the roles and functions of various public and private banks as well as other financial institutions that make up India's current financial system.
This document provides an overview of merchant banking in India. It discusses how merchant banking originated from merchants financing international trade in the late 18th/early 19th centuries. It then discusses the history and evolution of merchant banking in India, noting that specialized merchant banking services began in India in the 1960s with foreign banks and grew rapidly in the 1980s during a new issue boom. The document defines merchant banking and outlines some of its key functions like corporate advisory services, arranging securities issues, and providing post-issue support.
The document discusses the types of audits conducted at banks, including statutory audit, concurrent audit, and RBI audit. It outlines the objectives and key areas reviewed for each type of audit. The statutory audit verifies balance sheet classifications and ensures accurate income recognition. Concurrent audit checks transactions daily to fill gaps between statutory audits, examining revenue, expenses, documentation, and administrative functions. RBI audits assess the overall financial position and management policies to safeguard depositor interests and compliance with regulations. The document also describes the stages of auditing, including acquiring regulatory/industry knowledge, understanding books and records, and obtaining internal reports.
Introduction to Banking, Evolution of Banking, History of Banking system, Route map from traditional banking to Modern banking, Modern Banking system and its evolution, Growth of Indian Banking System
The document provides an overview of the banking industry, including its evolution and history. It discusses how banking originated in temples and palaces as safe places to store gold and other valuables. It then outlines the emergence of early banks like merchant banks in medieval times and the formalization of banking within distinct buildings by the Romans. The document also summarizes the nature, trends, and federal regulation of the modern banking industry.
- The document discusses non-banking financial corporations (NBFCs) in India and how they compare to banks. It notes that NBFCs play an important role in sectors like transport and infrastructure as well as employment and wealth creation.
- NBFCs are regulated by the Reserve Bank of India but have more flexible regulations than banks. For example, it is easier to start an NBFC and they can engage in non-financial activities. However, they do not have the same legal powers as banks for recovery.
- While NBFCs have grown significantly and cater to more customers, banks still dominate the financial sector in India, having more stringent rules around deposits and priority lending. Overall, NBFCs provide
Suits Against Government In India, Article 300 of the Constitution governs the suability of the state. It states that the Union Government and State Government
can be sued, subject to the provisions of the law made by the Parliament and the state legislature respectively.
Nidhi company overview & legal aspectsLawFox India
Nidhi companies are non-banking finance companies recognized under section 406 of the Companies Act, 2013. Their core business is borrowing and lending between members to cultivate savings habits. Key requirements for Nidhi companies include being a public company, having minimum capital and membership, restrictions on activities, compliance with deposit to loan ratios and other RBI regulations.
This document discusses accounting for promissory notes. It defines a promissory note as a written promise to pay a fixed amount of money at a future date, which may include interest. It provides a sample promissory note and identifies the key components of a note, including the maker, payee, principal amount, interest rate, maturity date, and place of issue. It describes how promissory notes can arise from transactions like services on credit, outstanding accounts, or loans. Finally, it distinguishes between non-interest bearing notes and interest-bearing notes.
This document provides an overview of the Negotiable Instrument Act of 1881 through a presentation covering its objectives, introduction, and 6 case studies. The Act defines negotiable instruments as promissory notes, bills of exchange, or cheques payable to order or bearer. It establishes a legal framework for commercial transactions involving the use of such documents in place of cash. The case studies illustrate examples of bounced cheques and the rulings made by courts in accordance with the Act.
Project on customer awareness towards internet bankingLakshmy TM
This study aimed to analyze customer awareness of internet banking services provided by Dena Bank in Kottayam, India. A survey was conducted of 25 customers from September to November 2017. The results showed that 80% of respondents were aware of Dena Bank's internet banking services, though only 40% had used them. The most common reasons for non-use were fear of security (41.67%) and lack of information (33.33%). Of those who had used internet banking, the highest level of satisfaction was 38.48% reporting being highly satisfied, while 15.38% reported being dissatisfied. The study provided insight into customer awareness and perceptions around Dena Bank's internet banking offerings.
An agreement without consideration is voidnimishakhot
An agreement without consideration is void according to Indian contract law, with three exceptions: 1) if it is in writing, registered, and made due to natural love and affection between parties in a near relation, 2) if it is a promise to compensate someone who voluntarily did something for the promisor that they were not legally required to do, or 3) if it is a promise to pay a time barred debt. The document then discusses these exceptions in more detail through examples and case law citations.
The document discusses key concepts related to cheque processing and payment between banks. It defines a paying banker as the bank upon which a cheque or bill is drawn and pays it. A collecting banker collects the proceeds of a cheque on behalf of a customer from the paying banker. The document outlines precautions a paying banker takes before honoring a cheque, reasons for dishonoring a cheque, statutory protections, and duties of a collecting banker. It distinguishes a paying banker, who is required to pay cheques drawn on it, from a collecting banker, who collects cheque amounts from paying bankers on behalf of customers.
Phases of Nationalization Process in India, Objectives of Bank Nationalization, Achievements of Nationalized Banks, Problems and Constraints of Public Sector banks, Note on Non Performing Assets
This document provides a summary of Axis Bank, including its history, organization, markets, and products/services. Some key points:
- Axis Bank was established in 1994 as one of the first new private sector banks in India after reforms allowed private banks.
- It has over 4,000 branches and 12,000+ ATMs across India and 7 international offices.
- The bank offers a wide range of personal, corporate, SME, and investment banking products and services.
- Axis Bank aims to be a preferred financial solutions provider through customer focus, empowered employees, and technology.
The document discusses key concepts related to banking. It defines a banker as someone who accepts deposits that can be withdrawn by cheque and uses those deposits to make loans and investments. It also defines a customer as anyone who maintains a bank account. The relationship between banker and customer is described as debtor-creditor, principal-agent, and other specialized relationships like bailee-bailor and mortgagor-mortgagee. The document also outlines key obligations of bankers like honoring checks, maintaining confidentiality, and handling accounts of deceased customers.
This document defines key terms related to banking:
- A bank is an institution that receives funds from the public and lends money to those who need it. It is defined as an institution whose debts (deposits) are widely accepted in settlement of other people's debts.
- A banker is a person who conducts banking business. There is no precise definition but a banker acts as both a depository and financial agent for customers.
- Banking involves accepting deposits from the public for lending or investment, repayable on demand or otherwise, and allowing withdrawal by cheque or similar means.
,
modes of charging
,
modes of charging security
,
different modes of creating charge
,
essentials of pledge
,
documents required for pledge
,
liquid asset
,
different forms of liquid assets
,
supplies of liquid assets
,
demand of assets
Emerging Trends of Banking in India.pptxSumeshJohn5
The banking sector in India has undergone significant changes in recent decades due to economic reforms and advancements in digital technology. Key trends include a large increase in deposits and credit, widespread digitalization and electronic banking services, bank consolidation through mergers, and the adoption of universal banking models. New regulations have also led to new types of banks obtaining licenses while open banking initiatives like UPI have increased payment options. Growing non-performing assets, fraud prevention measures, and the implementation of international banking standards additionally reflect changes in the Indian banking system.
This document discusses various types of charges that can be created over different types of securities to secure loans. It defines mortgage, hypothecation, pledge, lien, assignment and personal guarantee. It explains key characteristics of different kinds of charges like fixed charge, floating charge and crystallization. It also summarizes different types of mortgages like simple mortgage, conditional sale, usufructuary mortgage and equitable mortgage.
The document discusses the history and evolution of banking in India from ancient times to modern times. It covers the origins of banking in India, the pre-independence and post-independence banking systems, nationalization of banks in 1969 and 1980, types of banks in India including commercial banks, development banks and cooperative banks, policies of liberalization in the 1990s, and the increasing globalization of the Indian banking sector. It also provides details about the Bank of India as an example of a major public sector bank.
The document summarizes the history of banking in India from the establishment of the earliest Indian bank in 1870 to the modern structure and regulation of the Indian financial system. It discusses the key events and institutions that shaped the development of banking in India, including the establishment of the Reserve Bank of India in 1934 and its nationalization in 1949. The summary also outlines the roles and functions of various public and private banks as well as other financial institutions that make up India's current financial system.
This document provides an overview of merchant banking in India. It discusses how merchant banking originated from merchants financing international trade in the late 18th/early 19th centuries. It then discusses the history and evolution of merchant banking in India, noting that specialized merchant banking services began in India in the 1960s with foreign banks and grew rapidly in the 1980s during a new issue boom. The document defines merchant banking and outlines some of its key functions like corporate advisory services, arranging securities issues, and providing post-issue support.
The document discusses the types of audits conducted at banks, including statutory audit, concurrent audit, and RBI audit. It outlines the objectives and key areas reviewed for each type of audit. The statutory audit verifies balance sheet classifications and ensures accurate income recognition. Concurrent audit checks transactions daily to fill gaps between statutory audits, examining revenue, expenses, documentation, and administrative functions. RBI audits assess the overall financial position and management policies to safeguard depositor interests and compliance with regulations. The document also describes the stages of auditing, including acquiring regulatory/industry knowledge, understanding books and records, and obtaining internal reports.
Introduction to Banking, Evolution of Banking, History of Banking system, Route map from traditional banking to Modern banking, Modern Banking system and its evolution, Growth of Indian Banking System
The document provides an overview of the banking industry, including its evolution and history. It discusses how banking originated in temples and palaces as safe places to store gold and other valuables. It then outlines the emergence of early banks like merchant banks in medieval times and the formalization of banking within distinct buildings by the Romans. The document also summarizes the nature, trends, and federal regulation of the modern banking industry.
- The document discusses non-banking financial corporations (NBFCs) in India and how they compare to banks. It notes that NBFCs play an important role in sectors like transport and infrastructure as well as employment and wealth creation.
- NBFCs are regulated by the Reserve Bank of India but have more flexible regulations than banks. For example, it is easier to start an NBFC and they can engage in non-financial activities. However, they do not have the same legal powers as banks for recovery.
- While NBFCs have grown significantly and cater to more customers, banks still dominate the financial sector in India, having more stringent rules around deposits and priority lending. Overall, NBFCs provide
Suits Against Government In India, Article 300 of the Constitution governs the suability of the state. It states that the Union Government and State Government
can be sued, subject to the provisions of the law made by the Parliament and the state legislature respectively.
Nidhi company overview & legal aspectsLawFox India
Nidhi companies are non-banking finance companies recognized under section 406 of the Companies Act, 2013. Their core business is borrowing and lending between members to cultivate savings habits. Key requirements for Nidhi companies include being a public company, having minimum capital and membership, restrictions on activities, compliance with deposit to loan ratios and other RBI regulations.
This document discusses accounting for promissory notes. It defines a promissory note as a written promise to pay a fixed amount of money at a future date, which may include interest. It provides a sample promissory note and identifies the key components of a note, including the maker, payee, principal amount, interest rate, maturity date, and place of issue. It describes how promissory notes can arise from transactions like services on credit, outstanding accounts, or loans. Finally, it distinguishes between non-interest bearing notes and interest-bearing notes.
This document provides an overview of the Negotiable Instrument Act of 1881 through a presentation covering its objectives, introduction, and 6 case studies. The Act defines negotiable instruments as promissory notes, bills of exchange, or cheques payable to order or bearer. It establishes a legal framework for commercial transactions involving the use of such documents in place of cash. The case studies illustrate examples of bounced cheques and the rulings made by courts in accordance with the Act.
The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act of 1881 in India. It defines negotiable instruments and outlines their key features. It describes the three main types of negotiable instruments - promissory notes, bills of exchange, and cheques. For each, it provides definitions, essential elements, examples and discusses parties involved. The document also covers topics like negotiation, endorsement, and obligations in cases of dishonour.
The document discusses the Indian Partnership Act of 1932. It defines key terms like partnership, partners, and firm name. The essential elements of a partnership are: (1) an agreement between two or more persons, (2) to carry on a business together, (3) with the intention of making profits, which are then shared. A partnership agreement should be in writing to avoid future disputes and clearly outline aspects like the firm name, capital contributions, profit/loss sharing, duties of partners, and dispute resolution process. Partnerships can be for a particular undertaking/adventure or at will if no fixed duration is agreed upon.
Mba1034 cg law ethics week 11 business ownership 2013Stephen Ong
The document discusses different forms of business ownership including sole proprietorships, partnerships, corporations, S-corporations, and limited liability companies (LLCs). It provides details on the key characteristics of each type of ownership such as liability, taxation, formation requirements, and ownership structure. The types of ownership vary in terms of liability, ease of formation, governance, and flexibility. Choosing the right structure depends on factors like tax considerations, liability exposure, capital needs, and control.
This document provides an outline of key topics in the Negotiable Instruments Act of 1881 in India. It defines negotiable instruments as promissory notes, bills of exchange, or cheques payable to order or bearer. It classifies different types of negotiable instruments and outlines the essential elements and parties involved, including makers, drawers, drawees, payees, and endorsers. The document also discusses negotiation and transfer of instruments, presentation and dishonor, discharge, and rules of evidence and international law as they relate to negotiable instruments.
This document provides information on negotiable instruments under the Negotiable Instruments Act 1881. It defines negotiable instruments as written documents that entitle the holder to a sum of money. It describes the key characteristics of negotiable instruments including being freely transferable, the holder having free title, and ability to sue upon the instrument. It also discusses different types of negotiable instruments - bills of exchange, promissory notes, and cheques. Bills of exchange are defined as unconditional written orders to pay a specified sum of money. Promissory notes contain an unconditional undertaking to pay a certain sum of money. Cheques are a type of bill of exchange that is drawn on a banker and payable on demand.
To form a partnership under law, there must be a business, agreement to share profits, and business must be carried on by all or any partners acting for the whole. Partnerships have advantages like ease of establishment and ability to raise funds and attract employees through partnership incentives. However, partnerships also have disadvantages like joint and individual liability for partner actions, need to share profits, potential for disagreements, limitations on size and life of partnership, and requirement for consultation between partners.
The document provides an overview of negotiable instruments under Indian law. It defines key negotiable instruments like promissory notes, bills of exchange, and cheques. It outlines their essential elements and parties. Promissory notes contain an unconditional promise to pay, while bills of exchange contain an order to pay. Cheques are drawn on a bank and payable on demand. Negotiation allows the transfer of rights by endorsement and delivery. The document discusses endorsement, negotiation, and specimens of different negotiable instruments.
Report on Partnership presented By Nilda Vicente and Marian Alumbro
Copyright laws applicable
For question and permissions to use the presentation
email marianjanealumbro@yahoo.com
just inform us of your name, your school and purpose..thanks!
Law the negotiable instruments act 1881Adil Shaikh
The document summarizes key aspects of negotiable instruments under the Negotiable Instruments Act 1881 including promissory notes, bills of exchange, and cheques. It defines each instrument, outlines their essential elements and characteristics, and distinguishes between them. The key takeaways are that negotiable instruments must be freely transferable, give the holder clear title, and can be transferred indefinitely until maturity.
Limited Liability Partnership (LLP) provides benefits of limited liability but allows members flexibility to organize internally as a partnership. An LLP is a separate body corporate formed under the LLP Act. It must have at least 2 partners (individuals or bodies corporate) and 2 designated partners, at least one of whom must reside in India. Partners have limited liability for LLP obligations. An LLP must be registered with the Registrar of Companies and comply with annual accounting and audit requirements. Rights of partners may be transferred but not management participation. Foreign LLPs must register a place of business in India. Partnership firms, private/unlisted public companies can convert into an LLP.
The document discusses different forms of business organizations including sole proprietorship, joint hindu family business, partnership, and companies. It provides characteristics and details about each type of organization. Specifically, it notes that sole proprietorship is the simplest form owned by one individual, partnership involves two or more individuals sharing profits, and companies have limited liability and are separate legal entities from their owners.
The document discusses the Negotiable Instruments Act of 1881 and provides details about negotiable instruments such as promissory notes, bills of exchange, and cheques. It defines key terms like negotiable, instrument, and discusses the essential characteristics of valid negotiable instruments including being in writing, unconditional, for a certain sum, and more. Examples of valid and invalid promissory notes are also provided.
1. A cheque is a negotiable instrument that is drawn on a bank and used to make payments to a specified person or bearer. It must be in writing, drawn on a particular bank, unconditional, signed by the account holder, and payable on demand.
2. There are different types of cheques including bearer cheques, order cheques, open cheques, crossed cheques, anti-dated cheques, post-dated cheques, stale cheques, and mutilated cheques. Crossed cheques can only be deposited, not cashed.
3. Alterations to essential information like the date, amount, or payee name would make a cheque invalid unless initial
In this presentaion concept of negotiable instrument, types of negotiable instrument, holder and holder in due course, endorsement , how endorsement is done, kinds of endorsement insturment obtain by unlawful means and dishonor is included.
The document discusses key aspects of negotiable instruments under the Negotiable Instruments Act 1881 including definitions of promissory notes, bills of exchange, and cheques. It provides details on their essential characteristics and how they differ. A promissory note contains an unconditional undertaking signed by the maker to pay a certain sum of money. A bill of exchange is an unconditional order signed by the maker directing payment of a sum of money. A cheque is a bill of exchange drawn on a specified banker and payable on demand.
The document provides an overview of the Indian Contract Act of 1872. It discusses key elements of a valid contract according to the act, including offer and acceptance, lawful consideration, capacity and consent of the parties, a lawful object, and certainty of terms. It also categorizes different types of contracts based on their creation (express, implied, tacit, quasi), validity (valid, void, voidable, illegal), execution (executed, executory), and liability (unilateral, bilateral). The Indian Contract Act of 1872 is an important law that regulates contracts and agreements in India.
This document summarizes the key aspects of negotiable instruments under Indian law. It defines negotiable instruments as documents transferable by delivery that create rights, including promissory notes, bills of exchange, and cheques. It outlines the essential elements and parties involved in promissory notes, bills of exchange, and cheques. It also discusses negotiation, endorsement, liability of parties, and other important concepts regarding negotiable instruments.
The document discusses negotiable instruments under Indian law. It defines negotiable instruments as written documents that are transferable by delivery, including promissory notes, bills of exchange, and cheques. It outlines the key features and types of negotiable instruments. Promissory notes are unconditional promises to pay a certain sum of money, while bills of exchange are orders to pay drawn by one party on another. Cheques combine qualities of bills of exchange and are always drawn on a bank and payable on demand. The document provides examples and definitions of the parties involved in each type of instrument.
This document provides information about a team called TEAM-05 and its members AASHISH.J.N, AMOGH.R, ANIRUDDHA.C, DARSHAN.S, and DARSHAN KUMAR.G. It then discusses negotiable instruments under Indian law, including their definition, essential elements of promissory notes, bills of exchange, and cheques. Key points covered include what makes an instrument negotiable, specimens and examples of different types of negotiable instruments, and parties involved like makers, drawers, drawees, payees, holders and holders in due course.
Negotiable instruments include promissory notes, bills of exchange, and cheques. These are documents used in commercial transactions to transfer money from one party to another. A negotiable instrument must be in writing, signed by the maker, contain an unconditional promise to pay a certain sum to a specific person or entity, and be payable on demand or on a specific date. The key parties involved are the maker, drawer, drawee, acceptor, payee, and holder. For an instrument to be negotiated, it must be delivered to a new holder by endorsement and delivery.
1. The document discusses various types of negotiable instruments including promissory notes, bills of exchange, and cheques. It defines each instrument and outlines their key characteristics.
2. A promissory note contains an unconditional promise to pay a certain sum of money to a specific payee. A bill of exchange contains an unconditional order to pay money, and involves a drawer, drawee, and payee.
3. A cheque is a type of bill of exchange that is drawn on a bank and payable on demand. It must be dated, signed by the drawer, and the bank is obligated to pay the amount if the drawer has sufficient funds.
business law, what is negotiable instruments?kmolkhi
Information about negotiable instruments, promissory note, bill of exchange and cheque. In this the introduction and characteristics of promissory note or elements of bills of exchange
The document provides an overview of negotiable instruments under the Negotiable Instruments Act of 1881. It defines key terms like promissory note, bill of exchange, cheque, negotiation, endorsement and holder. It describes the essential elements and parties to different types of negotiable instruments. Specifically, it outlines the characteristics of a promissory note, discusses the mechanics of bill financing, and compares bills of exchange and cheques. The document aims to educate on the basic concepts and provisions related to negotiable instruments in India.
This document provides an overview of the Negotiable Instruments Act of 1881 in India. Some key points:
- The Act deals with promissory notes, bills of exchange, and cheques, which are negotiable instruments that allow rights to be transferred from one person to another.
- A negotiable instrument must be in writing, contain an unconditional order or promise to pay a certain sum of money, and allow the transfer of rights according to the Act's provisions.
- The Act establishes rules for different types of negotiable instruments. A promissory note contains a promise to pay, while a bill of exchange contains an order to pay. A cheque is a type of bill of exchange drawn on a
The document provides an overview of negotiable instruments under Indian law, including the Negotiable Instruments Act enacted in 1881. It defines key terms like negotiable, instrument, and discusses the essential features and types of negotiable instruments recognized in India. Specifically, it examines in detail the three main types of negotiable instruments - promissory notes, bills of exchange, and cheques - outlining their definitions, essential elements, parties involved, examples and classifications.
The document provides an overview of negotiable instruments under Indian law, including the Negotiable Instruments Act of 1881. It defines key terms like promissory notes, bills of exchange, cheques, negotiation and endorsement.
It outlines the essential elements and parties involved in different types of negotiable instruments. Promissory notes require a maker who promises to pay a sum to a payee. Bills of exchange require a drawer, drawee and payee. Cheques are drawn on a specified banker and payable on demand.
Negotiation allows an instrument to be transferred, making the transferee the new holder. This can occur through delivery for bearer instruments or endorsement and delivery for instruments payable
The document provides an overview of negotiable instruments under Indian law. It discusses key concepts like negotiable instruments, promissory notes, bills of exchange, and cheques. Some main points:
- The Negotiable Instruments Act 1881 governs negotiable instruments in India and is based on the English Act. It covers promissory notes, bills of exchange, and cheques that are transferable and payable to order or bearer.
- A promissory note contains an unconditional promise by the maker to pay a certain sum to the payee or order. A bill of exchange is an unconditional order to pay a certain sum. A cheque is a bill of exchange drawn on a bank and payable
The document provides an overview of negotiable instruments under Indian law. It defines key negotiable instruments like promissory notes, bills of exchange, and cheques. It outlines their essential elements, parties involved, and examples. The document also discusses negotiation, endorsement, and types of endorsement. The key information covered includes definitions of negotiable instruments, their distinguishing features, types like inland/foreign bills and time/demand bills, and roles of parties in promissory notes, bills of exchange, and cheques.
A negotiable instrument is a written document that allows ownership rights to be transferred freely. The key characteristics are that it contains an unconditional promise to pay a certain sum of money, is in writing, and is freely transferable through delivery or endorsement. The main types of negotiable instruments are promissory notes, bills of exchange, and cheques. A promissory note contains a promise to pay, a bill of exchange contains an order to pay, and a cheque is a bill of exchange drawn on a bank and payable on demand.
This document defines negotiable instruments and provides details about promissory notes, bills of exchange, and cheques according to the Negotiable Instruments Act 1881. It discusses the characteristics of negotiable instruments and defines key parties like the maker, holder, and holder in due course. The document outlines essential elements of promissory notes, bills of exchange, and cheques and provides examples. It also discusses types of negotiable instruments, endorsements, and discharge of obligations.
Negotiable instruments are written documents that entitle the holder to a sum of money. There are three main types: promissory notes, bills of exchange, and checks. A promissory note contains an unconditional written promise by the maker to pay a specified sum to the payee. A bill of exchange is an unconditional order in writing from the drawer to the drawee to pay a specified sum to the payee. A check is a written order from a depositor to their bank to pay a specified sum to the payee or bearer on demand.
Negotiable instruments are written documents that entitle the holder to a sum of money. There are three main types: promissory notes, bills of exchange, and checks. A promissory note contains an unconditional written promise by the maker to pay a specified sum of money. A bill of exchange is an unconditional order in writing from a drawer to a drawee requiring payment to a payee. A check is a written order from a depositor to a bank to pay a specified sum to a payee on demand.
The document summarizes key aspects of the Negotiable Instruments Act 1881 in India. It defines negotiable instruments as documents that allow the transfer of rights from one person to another. The Act covers three main instruments - promissory notes, bills of exchange, and cheques. It establishes characteristics of negotiable instruments like being freely transferable and the holder having title free of defects. The document also outlines parties, essentials, and types of the three instruments.
The document provides an overview of negotiable instruments under Indian law, including promissory notes, bills of exchange, cheques, and hundis. It defines each type of instrument, outlines their key features and parties involved. Promissory notes contain an unconditional promise to pay, while bills of exchange contain an order to pay. Cheques are a type of bill of exchange drawn on a bank. Hundis are indigenous instruments governed by custom. The document educates on the regulatory framework for negotiable instruments in India.
The document discusses key concepts around negotiable instruments under the Negotiable Instruments Act of 1881 in India. It defines negotiable instruments and outlines the main types recognized by law: bills of exchange, checks, and promissory notes. For each type, it describes the essential elements and parties involved, using examples. It also briefly discusses concepts like dishonor, notary public, noting, and protest related to negotiable instruments.
The document discusses various types of negotiable instruments including promissory notes, bills of exchange, and cheques.
[1] A promissory note is a written promise by a maker to pay a specified sum of money to the payee. A bill of exchange contains an unconditional order by the drawer for the drawee to pay a specified sum to the payee. A cheque is a type of bill of exchange that is drawn on a bank and payable on demand.
[2] The key parties for each instrument are identified - maker and payee for promissory notes, drawer, drawee, and payee for bills of exchange. Cheques have a drawer, specified bank
These future transaction (credit) done with help of documents called as Negotiable Instruments. The word Negotiable means ‘transferable by delivery’ & the word Instrument means ‘written document’. types of negotiable instruments like cheque and its types, promissory notes and its features and bill of exchange. endorsement and it types. crossing of cheque.
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
2. NEGOTIABLE
INSTRUMENTS ACT , 1881
In India only three kinds of instruments are
recognized as negotiable instruments viz.,
promissory notes, bills of exchange and cheques.
3. Negotiable Instruments
Documents of a certain type, used in
commercial transactions and monetary
dealings, are called Negotiable instruments.
“Negotiable” means transferable by delivery
and “instrument” means a written document
by which a right is created in favour of some
person.
Thus, negotiable instrument means “ a
document transferable by delivery”
5. What is Negotiation?
When a Promissory note, Bill of exchange or
cheque is transferred to any person, to make
that person the owner of the negotiable
instruments, then the instrument is said to be
negotiated.
6. Characteristics of the
Negotiability
An instrument is negotiable by virtue of the
following features,
1. Transferable by delivery
2. Entitled to receive money
3. Filing a suit
7. Characteristics of the Negotiable
Instruments
Freely transferable
Negotiability
In writing
Un conditional order or promise
Payment of a certain sum of money
Time of payment
The payee must be a certain person
A negotiable instrument must bear the
signature of its maker
8. Cont…..
Delivery of instrument is essential
Stamping of bill of exchange and promissory
notes is mandatory
9. Types of negotiable instruments
1. Promissory note
2. Bill of Exchange
3. Cheque
10. What is Promissory note?
A Promissory note is the simplest and earliest
kind of credit instrument.
“It is an unconditional written promise by
one person to another in which the maker
(payer) promise to pay on demand or at a
fixed or determinable date in the future, a
stated sum of money to or to the order of a
specified person or the bearer of the
instrument”.
11. Promissory Note
(Pro-Note or Hand-Note)
Definition:
“ A promissory note is an instrument in writing (not
being a bank note or currency note) containing an
unconditional undertaking signed by the maker, to
pay a certain sum of money only to , or to order of a
certain person, or to the bearer of the instrument.”
-------Sec. 4
The person who makes the promise to pay is called
the Maker. He is the debtor and must sign the
instrument.
The person who will get the money (the creditor) is
called Payee.
12. Essential Elements of a
Promissory Note
1. The instrument must be in writing.
2. It must be signed by the maker of it. The signature or mark may be
placed anywhere on the instrument, not necessarily at the bottoms. It
may be at the top or at the back of the instrument.
3. It must contain a promise to pay. It must be expressed not implied or
inferred.
e.g. “Mr. Sen I.O.U. Rs. 1000”. Here I.O.U. stands for “ I owe you.” This is
only an admission of indebtedness and not a promise to pay. So it’s
not a promissory note.
4. The promise to pay must be unconditional. If it is coupled with a
condition , it is not a promissory note.
e.g. “ I promise to pay B Rs.300 on D’s death provided D leaves me
enough to pay this sum.”
Promise to pay at a specified time or at a specified place or after
the occurrence of an event which is certain to occur or payment
after calculating interest at a certain rate
---------are not regarded as conditions.
13. 5. The maker of must be certain and definite.
6. It must be stamped according to the Indian Stamp Act.
7. The sum of money to be paid must be certain.
e.g. “ I promise to pay some money on the occasion of his marriage”
8. The payment must be in the legal tender money of India and
certain quantity of goods or foreign money.
9. The money must be payable to a definite person or according to his
order i.e. payee is indicated by his official designation.
10. It must be payable on demand or after a certain definite period of
time.
11. The Reserve Bank Act prohibits the creation of a promissory note
payable on demand to the bearer of the note, except by the Reserve
Bank or the Government of India.
Essential Elements for a
Promissory Note
14. Specimens of Promissory Notes
“ One year after date I promise to pay B or order Rs.
500.” ---- Sd/X.Y.
Date…………
“ On demand I promise to pay A.B of No.37, College
Street or order Rs1000(Rupees one thousand only)
with interest at 8 percent per annum, for value
received in cash.” Sd/X.Y
Date…………………
Address……………….
“ I acknowledge myself to be indebted to B in Rs.
1000 to be paid on demand, for value received.”
Sd/X.Y
15. Specimen of a Promissory Note
Rs 1,000 New Delhi, 25 Aug’11
One month after date I promise to pay to Mr.
A.K.Jha or order the sum of rupees one
thousand only, for value received.
Sd/X.Y.
Revenue
Stamp
16. Bill of Exchange
A bill of exchange is playing an important part
in the commercial life of the country. The
need for it arises where the buyer of goods
needs a period of credit before paying it.
It is drawn by the creditors and is accepted by
debtor.
17. Bill of Exchange
Definition:
“ A Bill of Exchange is an instrument in writing containing
an unconditional order, signed by the maker, directing a
certain person to pay a certain sum of money only to, or
to the order of a certain person or to the bearer of the
instrument.”
----Sec. 5
e.g. To A.B.
“ Six months after date pay P.Q. or order Rs. 1000”
Sd/X.Y.
Date………………..
Stamp…………………
18. The maker of a bill of exchange is called the Drawer.
The person who is directed to pay is called the
Drawee. The person who will receive the money is
called the Payee.
When the payee has custody of the bill, he is called
the Holder. It is the holder’s duty to present the bill to
the drawee for acceptance. The drawee becomes the
Acceptor after signing on the bill.
Sometimes the name of another person is mentioned
as the person who will accept the bill if the original
drawee does not accept it. Such a person is called
the Drawee in case of Need.
Bill of Exchange
19. Essential Elements of a Bill of
Exchange
A Bill of Exchange to be valid must fulfill the following
requirements:
1. The instrument must be in writing.
2. It must be signed by the drawer.
3. It must contain an order to pay, which is express and
unconditional.
4. The drawer, drawee and the payee must be certain and definite
individuals.
5. The amount of money to be paid must be certain.
6. The payment must be in the legal tender money of India.
7. The money must be payable to a definite person or according to
his order.
8. It must be properly stamped.
20. 9. The bill may be payable on demand or after a definite period of
time. But no one except the Reserve Bank and the
Government of India can draw a bill payable on demand to the
bearer of the bill.
If any of the requirements mentioned above is not fulfilled, the
document is not a bill of exchange.
e.g. “ Please let the bearer have Rs. 1000 and oblige.”
“ We hereby authorize you to pay on our account to the order
of X, Rs 6000.”
Essential Elements of a Bill of
Exchange
21. Classification of BOE
Periods
1- Demand bill
2-Term bill
Purpose
1-Trade bill
2-Accomodation bill-help party financially
Inland bills
Foreign bills
22. Specimen of a Bill of Exchange
Rs 1,000 New Delhi, 25 Aug’11
One month after date pay to Mr. A.K.Jha or
order the sum of rupees one thousand only,
for value received.
To
Satyender
12 miles
MIM, Ranchi Sd/Ritesh.
Revenue
Stamp
Accepted
Sd/-Satyender
23. Difference between promissory note and
bill of exchange
1. Two parties
2. Unconditional promise to
pay
3. Maker of a note is the dr.
& he himself undertakes to
pay
4. Liability of maker is
primary.
5. A pro-note cannot be made
payable to the maker
himself.
6. A note requires no
acceptance
1. Three parties
2. Unconditional order to pay
3. The drawer of a bill is the
creditor who directs the
drawee (his dr.) to pay
4. Liability of maker or
drawer is secondary.
5. Drawer and payee may be
same.
6. It must be accepted by
drawee
24. CHEQUES
What is a Cheque?
A cheque may be defined as written order of
a depositor upon a bank to pay to or to the
order of a designated party or to the bearer, a
specified sum of money on demand.
The person who draws the check is called
drawer, the bank on which the check is drawn
is called drawee, and the person to whom
payment is to be made is called Payee.
Cheque is always drawn on a specified
banker and it is always payable on demand.
25. Cheque
Definition:
“ A cheque is a bill of exchange drawn upon a
specified banker and payable on demand.”
----Sec. 6
Specimen of a cheque
Cheques are usually printed in the form shown below.
e.g.
Date……………
Pay A.B. or order (or bearer) the sum of Rupees Five Hundred
only Rs. 500/-
To
X.Y. Bank Sd/C.D.
26. Essentials of a Cheque
It must be unconditional order
1. It must be in writing
2. It must be drawn on a specified banker
3. it must be signed by the drawer
4. The order must be for the payment of a certain
sum of money only
5. Drawer, drawee and payee must be certain
6. The amount must be payable on demand
7. The signature must tally with the specimen
signature of the drawer kept in the bank.
27. A cheque must be dated.
A cheque drawn with a future date is valid but it is payable on and
after the date specified. Such cheques are called post-dated
cheques.
Essential Features of Cheque
28. Difference between bill of exchange and
cheque
Bill of Exchange
1. A bill of exchange may
be drawn on any person
2. A bill must be accepted
by the drawee before
making payment upon it
3. A bill is entitled to 3
days of grace
Cheque
1. But a cheque is always
drawn on a bank
2. But a cheque does not
require acceptance
3. A cheque is not entitled
to any days of grace
29. cont
4. A bill may be payable
on demand or after the
expiry of a certain
period
5. No need to crossed
6. A bill must be stamped
7. A payment of a bill
cannot be
countermanded
4. But a cheque is always
payable on demand.
5. A cheque may be
crossed
6. A cheque does not
require any stamp
7. Payment may be
countermanded by the
drawer
30. Types of Check
We have two types of checks;
Open Check
Crossed check
31. What is open check?
Open Check:
Open checks are those checks which are
paid across the counter of the bank.
Open checks has further two types
Bearer check
Order check
32. Types of Open check
Bearer check:
If a drawer orders the bank to pay a stated sum of money to
the bearer, it is called a bearer check.
Any person who lawfully possesses a bearer check is
entitled to receive payment of that check.
Name of the payee need not be written
Bank shall take signature of the bearer
Order check:
If the check is to the order of a person in whose favour the
check is drawn, it is called order check.
The order check is paid by the bank only when the bank is
satisfied about the identity of the payee.
Name of the payee should be mentioned
Cannot be transferred by mere delivery. Requires
endorsement.
33. M.I.C.R Cheque(Magnetic Ink
Character Recognition)
speed up the cheque clearing process
Special quality paper and printing
specifications
Code line at the bottom of the MICR cheque
first six numbers indicate the cheque number
next three – city code
next three – bank code
next three - branch code
34. Truncated cheque
Cheque truncation means that the physical
cheque is scanned at the bank of first deposit
(presenting bank) and thereafter the
electronic image of the cheque is sent to the
clearing house.
35. Electronic cheque
Electronic version of a paper cheque
Using email or other transport methods
Exact mirror image of a paper cheque
Digital signature
36. Steps to create electronic cheque
Prepare physical paper cheque. it should be
signed by drawer
Create electronic image
Add digital signature
Addition to biometric signatures – only
optional
37. Crossed cheque
If a cheque is crossed by drawing two
parallel lines across the face of the check,
with or with out the words & Co or A/c
payee only, it is called a Crossed check.
The crossed check cannot be paid on the
counter of the drawee bank. It will be
deposited in the account of a person in
whose order or favor it is drawn.
38. Objectives of Crossing
The check is crossed to achieve the
following objectives;
It prevent the payment of the check to a wrongful
holder
It ensure safe payment to the concerned receiver
It facilitate in tracing the recipient of the payment if
the check is wrongfully crossed
Further it is a guard against any cheating or theft.
39. Kinds of Crossing
Legally there are two kinds of crossing;
General crossing
Special crossing
40. Kinds of Crossing
General crossing:
The drawing up of two parallel lines on the
face of the check at the top left hand corner
with or without the words & Co not negotiable
or Account payee only is known as a General
Crossing.
The effect of general crossing is that the
crossed check cannot be paid at the counter
of the bank.
Its payment can only be deposited into the
payee’s account only.
41.
42. Kinds of Crossing
Special crossing:
A check is deemed to be crossed specially
when it bears across its face the name of the
banker either with or without the words not
negotiable.
In case of special crossing the payment can
only be made to the bank named therein the
check.
A special crossing makes a cheque safer
than general
43.
44. Not negotiable crossing
The cheque must contain the words ‘not
negotiable’. The cheque must be crossed
generally or specially. The effect of the
words ‘not negotiable’ on a crossed
cheque is that when such a cheque is
endorsed, the endorsee cannot get a
better title than that of the endorser.
Not negotiable does not mean not
transferable
45. Restrictive Crossing or account
payee crossing
It has been adopted by commercial and
banking usage.
In this type , the words a/c payee are added
to the general or specific crossing.
It warns the collective banker that the
proceeds are to be credited only to the
account of the payee.
Further protection
46. Double crossing
Crossing a cheque specially to more than one
banker
A cheque cannot have Double crossing –
first crossing is defeated by the second
crossing
47. Obliterating a crossing
Erasing the crossing on the cheque
Opening of crossing-if the crossing of cheque
is cancelled ,Then it becomes a open cheque
48. Dating of Cheques
Ante dated Cheque -date earlier to the date
of issue
Post dated cheque – date which is yet to
come
Stale cheque – a cheque which is not
presented for payment with in reasonable
period of time (3 months)
Mutilated cheque-torn into two or more pieces
49. Holder
Holder (Sec.8)
The holder of a promissory note, bill or cheque
means any person entitled in his own name (i) to
the possession thereof, and (ii) to receive or
recover the amount due thereon from the parties
thereto.
50. Holder in due course (Sec.9)
Holder in due course, a person must possess
the following qualification;
1.He must be a holder
2.He must be holder for valuable consideration
3.He must have become the holder of the
negotiable instrument before its maturity
4.He must take the negotiable instrument
complete and regular on the face of it
5.He must have become holder in good faith
51. .
Basis Holder Holder in Due Course
Consideration Not Necessary Only if he obtains NI for
Consideration
Maturity Before or After Maturity Only before Maturity
Right to Sue Cannot sue all prior parties Can Sue all the prior Parties
Privileges Less Privileges' than HDC More Privileges than Holder
Good Faith Holder even if he obtains NI other
than in Good Faith
HDC only if he obtains NI in good
Faith 51
Basis Holder Holder in Due Course
Consideration Not Necessary Only if he obtains NI for
Consideration
Maturity Before or After Maturity Only before Maturity
Right to Sue Cannot sue all prior parties Can Sue all the prior Parties
Privileges Less Privileges' than HDC More Privileges than Holder
Good Faith Holder even if he obtains NI other
than in Good Faith
HDC only if he obtains NI in good
Faith
52. DEMAND DRAFT
It is an instrument used for effecting transfer
of money
Validity 3 months but it can be revalidated on
application
A demand draft is an order to pay money
drawn by an office of a bank upon another
office of the same bank for a sum of money
payable to order on demand.
53.
54. Difference between cheque and
DD
A cheque is issued by individual but a draft is
issued by banker
A cheque is drawn by an account holder of a
bank.A draft is drawn by one branch of bank
on another branch of the same bank
In a cheque drawer and drawee are different
persons.in a draft both the drawer and
draweee are the same bank
Payment of cheque can be stopped by the
drawer.the payment of draft cannot be
stopped
55. Cont…
In cheque payment is made after presenting
cheque to bank while DD is given after
making payment to bank
A cheque can be made payable either to
bearer or order. A demand draft is always
payable to order of a certain persons
A cheque can be dishonored for want of
sufficient balance in account. Draft cannot be
dishonored
56. Endorsement
Indorsum –on the back
The literal meaning of the word endorsement is
writing on the back of an instrument. Under the
NI Act, it means, writing of the name of the
endorsee on the back of the instrument by the
endorser under his signature with the object of
transferring the rights therein.
If an instrument is fully covered with endorsements
and no space is left, further endorsement can be
made on a slip of paper (called allonge)
annexed thereto
57. Effects of endorsement
Endorsee gets the right, title or property in the
instrument
He also gets the right of further negotiation
The endorsee acquires the right of the
instrument as its holder
The endorser guarantees to the endorsee
that he had a good title to the instrument
The endorse certifies the genuiness of the
instrument
58. General rules regarding
Endorsement
Signature of the endorser
Spelling
No addition or omission of the initial of the
name
Prefixes and suffixes should be avoided
Endorsement by women
Endorsement by illiterate persons
Endorsement by firms
Endorsement by companies and other
institutions
60. Kinds of Endorsement
1. Blank or general endorsement
Just put the signature of endorser without mention
the name of endorsee
Eg: sd/-
D.Mohan
2. Special or full endorsement
Including the name of endorsee
Eg:
Pay to Ghosh or order sd/-
D.Mohan
61. .
3. Restrictive endorsement
An endorsement, when it prohibits or restricts the
further negotiation of the instrument.
Eg: pay to Ghosh only sd/-
D.Mohan
4. Conditional or Qualified
An endorsement is conditional or qualified if it
limits or negates the liability of the endorser
Eg: pay to ghosh on Signing a receipt Sd/-
D.mohan
62. cont
5. Partial endorsement
When an endorser endorses only a part of the
amount mentioned in the instrument. it is
irregular
6.Sans frais endorsement-sans frais means
without expense.
pay aneesh or order ,without expense to me
sd/ M.P Sudheer
64. Liabili
ty
o
f
a
n
Endors
er
(Sec.3
5)
Every endorser who
endorsed an
instrument before its
maturity is liable to the
parties that are
subsequent to him.
And his liability arises
only if there is a default
by the party who is
primary liable to pay
the instrument on
maturity.
64
69. Parties of e payment
Payer and payee
Financial institutions -2 roles
as an issuer –interacting with the payer
as an acquirer – interacting with payee
70. Characteristics of electronic
payment
No paper
Directly from home or office
fast, efficient, safe,secure and less costly
Fully traceble
Same day value of payment
Same day money transfer
Convenient for the consumer
Customer retention
71. Phases of E-Payment
Registration
Invoicing
Payment selection and processing
Payment authorization and confirmation
72. Types of E-payment
Cards
Internet
Mobile payment
Financial service kiosks
Television set top boxes and satellite receiver
Biometric payment
Electronic payment networks
Person to person payments