The document discusses various banking instruments used for financial transactions, highlighting the distinction between negotiable and non-negotiable instruments. Negotiable instruments, such as checks and promissory notes, can be transferred freely, while non-negotiable instruments, like government bonds, are specific to the owner and cannot be transferred. The significance of these instruments in facilitating transactions and their impact on the economy is emphasized.

1. LET'S TALK ABOUT
VARIOUS BANKING
INSTRUMENTS

2. Banks offer various types of
instruments through which the
financial transactions can take place.
In our daytime day life, one might
have encountered use of deposit slip,
withdrawal slip or even checks but
there are other types of instruments
which banks do use for transactions
and among them, some are open

4. Before going into details of the
banking instruments, one should think
about two types instruments.
One is negotiable bank instruments
and the other one is nonnegotiable
bank instruments.
Negotiable instruments are those
instruments which can be transferred

5.  Non-negotiable instruments are those
instruments which aren't transferable from
one person to the other and hence, they are
specific in nature.
 This s the main difference between
negotiable and non-negotiable instruments
where one can be transferred and the other
one doesn't give permission to be
transferred.
 When we talk about negotiable instruments

7.  Those instruments are checks, bank draft,
bill of exchange and promissory notes.
 They are characterized by the fact that, they
are uninhibitedly transferable, unconditional,
in writing and payable on demand.
 On the other hand, the characteristics of
non-negotiable instruments are that it can
be transferred. For example, government
bonds are a perfect example of non-
negotiable bonds.

9. They can only be redeemed by the owner
and others cannot redeem it at any cost.
In our daily life, we use one instrument
more than the other. For example,
someone will love to deal with checks but
he or she may not be comfortable while
dealing with cash.
As such, it gives a convenient of not
having to carry a lot of money. And since

10. Moreover, promissory notes or
demand drafts also play a key part in
banking instruments.
For example, a demand draft
guarantees to pay that exact amount
to the person/organization whose
name is written in the demand draft.
Thus it is the bank instruments which

12. This kind of instrument plays a
pivotal part in the economy.
It is these instruments through
which transactions can actually
take place.
Hence, these instruments are the