Negotiable Instrument Act is a fascinating subject of Economic, Business, and Commercial Laws that we will explore in our CS Online coaching classes. Here is an example of a cheque:
Cheque – Negotiable Instruments Act
A cheque is a bill of exchange drawn on a specific banker and not expressly stated to be payable on demand; it often contains the electronic illustration of a truncated cheque and a cheque in electronic form. (NIA, Sec. 6)
Explanation 1 – In this section, the expressions-
A cheque in electronic form is one that contains an exact mirror image of a paper cheque and is created, written, and signed in a secure system that ensures minimum security standards through the use of digital signatures (with or without biometric signatures) and asymmetric cryptography.
A truncated cheque is one that is truncated during the clearing period, either by the clearinghouse or by the bank, whether paying or receiving payment, as soon as an electronic picture for transmission is produced, obviating the need for further physical movement of the cheque in writing.
Explanation 2 – The term clearinghouse refers to the clearinghouse run by the Reserve Bank of India or a clearing house recognized as such by the Reserve Bank of India for the purposes of this section.
The topic Negotiable Instrument is an important topic of CS Executive Economic, Business and Commercial Laws (Paper – 7) and is also included in other subjects of CS like BUSINESS ENVIRONMENT & LAW.
Kinds of Crossing Cheques
Cheque crossing can be divided into two types:
- General crossing, and
- Special crossing.
The basic kind of crossing may take several forms. Some of them are:
- Restrictive crossing.
- Not negotiable.
Click here to know more about kinds of crossing cheques!
As Takshila learning is serving CS Executive online classes for CS COURSE through online portal Takshila Learning CS PREPARATION classes comprises of CS ONLINE COACHING CLASSES, video lectures, MCQs series, and proper notes for preparation.
A complete explanation of the method of costing with examples is available for CS PREPARATION in CS online coaching classes.
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