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Negotiable Instruments Understanding The Basics

This document discusses negotiable instruments and cheques. It defines negotiable instruments as signed documents that promise a payment. The main types are cheques, bills of exchange, and promissory notes. Cheques have a payee, drawer, and drawee. Endorsement involves signing a cheque to transfer rights to a third party. Dishonouring a cheque means the bank will not honor payment and has legal consequences for the drawer.

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40 views

Negotiable Instruments Understanding The Basics

This document discusses negotiable instruments and cheques. It defines negotiable instruments as signed documents that promise a payment. The main types are cheques, bills of exchange, and promissory notes. Cheques have a payee, drawer, and drawee. Endorsement involves signing a cheque to transfer rights to a third party. Dishonouring a cheque means the bank will not honor payment and has legal consequences for the drawer.

Uploaded by

Dikshant
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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DEV BHOOMI

UTTARAKHAND UNIVERSITY

ASSIGNMENT
BUSINESS LAW

SUBMITTED BY: AJAY BISHT SUBMITTED TO: Mrs. SUBHI SINGH


ROHIT CHAUHAN
ASHISH RAWAT
SAKSHI RAWAT
MAYA
Topic :
• Negotiable Instrument ( Types )
• Cheque ( Types )
• Endorsement( Dishonor of Cheque )
Negotiable Instruments:
Understanding the Basics

• It is a signed document that promises a payment to a


specified person or assignee.
• They are transferable from one person to another
• It is always a written document
• It came into force on 1 march 1881

• Types of N.I. Cheque


Bill of exchange
Promissory
Note
’

SCHEME
Customer-Centric Approach: Banks are
shifting towards a more customer-centric
approach, focusing on personalized
services, improved customer experiences,
and tailored financial solutions.
Cheques: A Popular Type of Negotiable
Instrument
Cheques are widely used negotiable instruments that provide a convenient means of payment.

1 Payee

The person or entity to whom the cheque is payable.

2 Drawer

The party who issues the cheque and signs it.

3 Drawee

The bank or financial institution upon which the cheque is drawn.


’

SCHEME
The Green Banking Initiative is a program introduced by banks
to promote environmentally friendly practices in the banking
sector. It aims to reduce the carbon footprint and promote
sustainability through various initiatives. This can include
encouraging customers to opt for paperless transactions,
implementing energy-efficient technologies in bank branches,
and supporting eco-friendly projects. By participating in the
Green Banking Initiative, banks and customers can contribute to
a greener and more sustainable future. It's a great step towards
protecting the environment while still enjoying the convenience
of banking services.
Types of Cheques
Bearer Cheque

Pays the specified amount to whoever presents the cheque.

Order Cheque

Pays the specified amount to the person or entity named on the cheque.

Crossed Cheque

A crossed cheque is a cheque that has been marked specifying an instruction on the way it is
to be redeemed
’

SCHEME
Digital Transformation: Banks have
embraced digital technologies to offer
online banking services, mobile apps, and
contactless payment options to make
transactions more convenient for
customers.
Endorsement: The Power of Signature
Endorsement is the act of signing a cheque to transfer rights to a third party or to a specified
account.

1 It is the act of signing a check with the process of transmitting it to somebody


else

2 The Endorsement was stated in section 15 of the negotiable


instrument act 1881
’

SCHEME
Regulatory Compliance: Banks are
continuously adapting to changes in
regulations and compliance requirements
to ensure transparency, fairness, and
customer protection.
Dishonour of Cheque: Consequences and
Safeguards
When a cheque is dishonoured, it means that the bank cannot or will not honor the payment.

1 Reasons for Dishonour

Inadequate funds, signature mismatch, or expiration of cheque are common causes.

2 Consequences

Legal implications, loss of credibility, and potential financial penalties for the drawer.

3 Safeguards

Best practices for maintaining sufficient funds and vigilance in signing and issuing cheques.
’

SCHEME
Open Banking: In some regions, banks are
adopting open banking policies that allow
customers to securely share their financial data
with authorized third-party providers. This
enables customers to access a wider range of
financial services and innovative solutions.

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