Cheques that issued to customers who are offered the facility of anywhere banking are 1234 Section 123

of the NI AC defines S!ecial crossing""" general crossing #ho can cross the cheque$ 124 he cheque number and code number of the bank and branch are !rinted in %%%%%%%%%%%%%%%%%%%%%%%%%%to facilitate !rocessing of cheques through automated reader sorter machines& 'agnetic ink If a cheque is crossed and restricted( its mode of !ayment is reated as a condition"""" Not treated as a condition& A !erson who becomes a holder of a negotiable instrument( for )aluable consideration and good faith and not knowing that the transferor did not ha)e good title to it* is called %%%%%%%%%& +earer in due course""" #hen a cheque being !resented for !ayment( the following needs to be checked to confirm that the cheque is in order 1234, In which year was the NI AC !assed$ 1--1 he !ayee of the order can make the instrument !ayable to another !erson by writing on the back of the cheque ./ay 'r&0%%%%%%%% or order. and !utting his signature below it& Such a notation on the back of the cheque is called an 1ndorsement If the drawees name is not mentioned in cheque it is In)alid cheque #hich sec of NI Act requires that !resentment for !ayment must be made on a working day within banking hours Sec ,2""" 4""" If the s!ace is insufficient for endorsement( it may be done on a !a!er attached to the cheques& Such an attachment is called an %%%%%%%%%%3 2

he banker.s duty to honour cheques issued by the customer is limited by the following conditions 1234 #hat is the transferee or the .holder. of the instrument called 1 If a cheque is torn in one corner and is recei)ed from another bank( the !resenting bank has to !ut a stam! reading .'utilation 4uaranteed( /lease /ay. and signed the guarantee( the cheque can be !aid

he !romise to !ay should be unconditional yes he lenders take !ost dated cheques in re!ayment of the loan because of 5egal liability for non !aymnet of cheques""" Criminal liability for non !ayment of cheques #hat are the characteristics of negotiable instrument$ 23-"""2346, Cheque containing im!ossible dates becomes !ayable on the last day %%%%%%%%%%%% 7ele)ant month #hat is cheque$ A cheque is an order from the account holder to his bank to !ay a certain sum of money to the !erson named in the cheque""" A cheque is an instruction from the account holder to his bank to !ay a certain sum of money to the !erson named in the cheque #hat has all the qualities of a negotiable instrument which is not listed in Negotiable Instrument Act$ A cheque"""" A currency note Current account holder can a!!ly for bearer cheque book true #hat is usance !romissory note$ If the !romise is to !ay after a certain !eriod( say one month after the date of the !romissory note or on a s!ecific date in the future #hich of the following do not restrict the negotiability or transferability of the cheque A cheque containing the words .negotiable.""" he cheques e0ecuted by a !artner is always signed on behalf of the firm so as to bind the firm #hen it is need""" 1

If accounts are 8ointly o!erated(the alterations should be signed by all the authorised signatories as !er the o!erating instructions rue #here is endorsement made$ 1 he amounts of cheque in words and figures should tally rue In case of +ills of e0change(the due date is calculated after adding%%%%%%%%%%%%%%of %%days to the usance !eriod 2 #hat is /romissory Notes$ An instrument in writing containing an unconditional !romise signed by the maker to !ay a certain sum of money to a certain !erson or to the bearer of the instrument An order instrument can be transferred by endorsement and deli)ery whereasa a %%%%%%%% instrument can be transferred by mere deli)ery +earer instrument Any change( which alters the business effect of an instrument of cheque is called 'aterial alteration A negotiable instrument must be 9nconditional #ho issues !rinted chequebooks for use by its customers$ +anks he drawee of a cheque is%%%%%%%%%% +ank 'r&7ahul gi)en a cheque dated 2nd 'arch 2::,( if !resented for !ayment on 2;th Se! 2::,( then it is 4th o!tion""" If the details of to whom or whose order the amount is to be !aid( is mentioned under endorser .1ndorsement in full.& he drawer is the !erson who makes and signs the !romissory note rue #hat are the methods to write a usance bill

124""14""4 he !ayee can gi)e notice of dishonour within%%%%%%days 3:"""12 All alterations on cheques should be authenticated by <ull signature of the drawer of the instrument %%%%%%%% is defined as a bill of e0change drawn on a s!ecified banker and not e0!ressed to be !ayable otherwise than on demand$ cheque #hat does the word .Account !ayee. means$ =irection to the collecting bank that the cheque should be collected only for the !ayee he debtor is duty bound to make !ayment to the holder in due course who .!resents. the instrument to him for !ayment rue he elaborate enquiries has to be made by the bank or debtor before making the !ayment of the cheque Not necessarily"""""" Necessary #hich of the following are the three negotiable instruments$ /romissory note( cheque( bill of e0change %%%%%% is necessary when there is contract or agreement between two !ersons& Consideration %%%%%%%%%%%% and networking makes it !ossible to access data relating to customers from any branch at any !lace Centralisation A sto! !ayment request can be gi)en by 23 State whether the statement is true or false A conditional !romissory note or bill of e0change or cheque is a negotiable instrument false A usance !romissory note has to be stam!ed by affi0ing non38udicial stam!s of requisite )alue( as !er %%%%%%%%%%Act Stam! o confirm the date of the cheque !resented for !ayment(the bank has to check whether it is 123

#hen the amount of the cheque is large (the bank asks for identity !roof of the bearer or contact the drawer on the !hone numbers a)ailable on bank records to confirm %%%%%%% of the cheque& issuance he duties of collecting banker can be 234 A crossed cheque can only be%%%%%%%%%%%%%to the bank account of the %%%%%%%%% Credited (!ayee In case of legal entities( the cheques should be signed for and on behalf of the entity& his is done by !utting a %%%%%%%%%%%%carrying the name of the entity and the !osition of the signatory >riginal stam!"""7ubber stam! If both order or bearer is written on an instrument( it will be treated as A bearer instrument Stale cheque can be !aid if the cheque is dated more than 6 months No Section 31 of the NI Act defines the duty of the !aying banker to honour cheques issued by the %%%%%%%% ha)ing sufficient funds a)ailable for !ayment =rawer A bill of e0change contains an >rder"""" +anks make !hysical !resentation of bills <alse /artners of a firm are called /illar of the firm"""" If a cheque is crossed( the !aying banker cannot !ay cash across the counter rue If a cheque is dishonoured( %%%%%%%%%%% action can be taken against the drawer Criminal If the bills of e0change is acce!ted it has to be !resented to%%%%%%%% on due date for the !ayment =rawee he requirement of endorsement should be 9nbroken and regular

#ithout the signature (the cheque is Not )alid #hen a cheque is made !ayable to 'r&? or bearer( the !ayee can transfer the instrument to another !erson by merely handing it o)er to him or mere .deli)ery.& true he date in the !romissory note should be in left corner <A5S1 he !rocedure of re3!resenting the bill to the drawee through a lawyer and getting the fact of dishonour confirmed is called /rotest If the signature is forged( then no statutory !rotection is a)ailable to the bank for !ayment in due course& his is accordance with %%%%%%% @section of AC A$ Sec -2 An acknowledgement is issued to the customer gi)ing the date and time of recei)ing the instruction to !re)ent any dis!ute in future rue 'r&Bari issues a cheque to 'r&7am and it is dishonoured( hence here 7am can file a %%%%%%%%against Bari Suit A cheque crossed s!ecially to a bank can be collected only by that bank true #hat is not required for transfering the bearer instrument$ =eed"""" Agreement """ 1ndorsement he !ayee can treat the bill as %%%%%%%%%%% by non3acce!tance( if the bill is not acce!ted within 4hours& Bonoured""" %%%%%%%%%%%%%%is checked against the numbers of the cheques issued to the customer at the time of !ayment( he serial number of the cheque /ro)ing lack of consideration is on the drawer which can !rom!t the lender to take %%%%%%%%% cheques from their borrowers rue A !ayees name has to be necessarily s!ecified in cheques yes

A cheque is a =emand bills of e0change he undated cheque is not )alid but the bank can write the date on the cheque No In the !romissory note( if .monthly rests. is not !aid immediately(%%%%%%%%%%%%%%will be !ayable by the drawer Com!ound interest

#ho can .transfer. an order instrument by .endorsing. it$ !ayee In case of =eath( insol)ency or insanity of the drawer before date of cheque(!ostdated cheque should not be !aid rue A !erson who draws a +ill of e0change is known as the %%%%%%%%%%% =rawer If a bill is a demand or usance instrument( a cheque will be =emand instrument /ro)ing lack of consideration is on the drawer which can !rom!t the lender to take %%%%%%%%% cheques from their borrowers /ost dated #ho issues the currency notes$ he 4o)ernor of the 7eser)e +ank of India #hat is the !enalty gi)en to drawer in as !er Section 13-( when the cheque is dishonoured$ he drawer may be im!risoned for u! to two year or asked to !ay a fine of u! to twice the amount of the cheque or both"""" he drawer may be im!risoned for u! to one year or asked to !ay a fine of u! to twice the amount of the cheque or both State true "false #hen a cheque is crossed to more than one banker( the !aying banker will refuse !ayment true It is necessary to check if the signature corres!onds to the signature on record by the banker rue #ho signs the !romissory notes$ Signed by the !romissory or the !erson who makes !romise

Choose the ty!es of material alteration from the following 1342 he !rinted words on the cheques (the words .or order. or .or bearer. are !rinted by the %%%%%%%% +ank #ho should date the Cheque$ =rawer If a bearer cheque is missing(and the !erson who found out in fa)our of someone else( deli)ers it to a sho! kee!er( in !ayment of some !urchase( the sho! kee!er becomes a holder in due course in case he did not know that the cheque had been missing he debtor is duty bound to make !ayment to the holder in due course who .!resents. the instrument to him for !ayment he duties of collecting banker can be 234 Current account holder.s cheques are !rinted with the word%%%%%%%%%%%% .>r order. If the details of to whom or whose order the amount is to be !aid( is mentioned under endorser signature( the endorsement is called an %%%%%%%%%%%%%%%%%%%% .1ndorsement in full.& he !romise to !ay whene)er !ayee demands !ayment( is called =emand !romissory note State some of the reasons for return of cheque 14 If both order or bearer is written on an instrument( it will be treated as A bearer instrument 'r&/rakash is holding the bearer instrument( can he claim the amount from the drawee& Any one holding the bearer instrument( can claim the amount from the drawee& If the endorser merely signs his name without s!ecifying the name of the !erson to whom !ayment must be made( it is called +lank endorsement #hat is meant by crossing of cheque$ /utting two !arallel lines on the left to! corner of the face of the cheque

An instrument in writing( containing an unconditional order( signed by the maker( directing a certain !erson to !ay a certain sum of money only to( or to the order of( a certain !erson or to the bearer of the instrument is called Cheque""bill of e0change #ho signs in the cheque$ =rawer A !ayee should not be a certain !erson rue or false <alse #hat are the ad)antages of cross cheques$ 13 he usual form of signature in case of limited com!anies is as follows <or and on behalf of Com!any.s name @signedA #hat amounts to material alteration$ A holder cannot delete or cancel an e0isting crossing In the bills of e0change( !erson liable to !ay the money is called as the =rawee he !romissor is maker and the !romisee is called as !ayee& he former is%%%%%%%%while the latter is the %%%%%%%%%%%C Creditor and debtor"""" In what all ways a customer can sto! the !ayment of cheque$ A n b"""" +y consent of !ayee """" +y written request In case of +ills of e0change(a usance bill has to be stam!ed with %%%%%%%%%%%%%%%%%% as !er stam! act& Non Dudicial stam!s If the account is o!erated by an authoriEed agent then cheque should contain An e0act signature of agent"""""" #hat words are !rinted on the cheques issued to sa)ings account customers $ .>r bearer. If the cheque is mutilated or torn by accident( the drawer has to confirm in %%%%%%%%%%%%%%%%that the cheque can be !aid 24 In case of +ills of e0change(the due date is calculated after adding%%%%%%%%%%%%%%of %%days to the usance !eriod =irector

4race !eriod (3 /ayment of a cheque after banking hours is a !ayment in due course no 'IC7 stands for 14 A usance bill has to be .acce!ted. by the drawee or debtor before it becomes %%%%%%%%% )alid ransferring of ownershi!( free from defect( through endorsement and deli)ery in the case of an order instrument and mere deli)ery in the case of a bearer instrument is called Negotiability If a !erson !romises to su!!ly goods( it is not a !romissory note rue(it should be to !ay money to another !erson not goods If cash !ayments are of 7s 1: lakhs and abo)e( the bank has to obtain a %%%%%%%% from the customer stating the !ur!ose of the withdrawal& None"""consent he !ro)ision of Sec 13- of the NI AC came into effect from %%%%%%%%%%% 1&4&1;-; In case of +ills of e0change( the drawer is called the%%%%%%%%and in case of !romissory notes the drawer is called the%%%%%%himself Creditor and debtor #hat are the words( .for )alue recei)ed. in a !romissory note and bill of e0change considered as Affirmation by the drawer As !er NI Act( cheques are not !ayable only at the branch where the account is held rue #ho gets .discharged. from his obligations on !ayment to the holder in due course$ he =ebtor #hich ty!e of cheques do not grant an authority to debit the account of the customer till the date arri)es$ />S dated If the bill is on due date the !ayee of a usance bill will need a confirmation from the %%%%%%%%% =ebtor #hich sections of the NI Act defines crossing$

Section 123 and 124 o whom the !romissory note !ayment is to be made$ =rawer&&&"""@makerA 1 S!ecial crossing is defined in Sec%%%of the NI AC Sec 122""" 1 #hat is forgery of the cheque$ If any !erson other than the customer himself( without his s!ecific authority to sign( signs by co!ying customer.s signature with the intention to !re8udice that customer If both order or bearer is written on an instrument( it will be treated as 4 #hen a cheque is made !ayable to 'r&? or bearer( the !ayee can transfer the instrument to another !erson by merely handing it o)er to him or mere .deli)ery.& rue #ho has to gi)e .notice of dishonour. to drawer in case of dishonour by non !ayment Creditor""" +anker""" +earer cheques are !ayable to the !erson who is in %%%%%%%%%%%% of the instrument 14 #hich of the features are not considered as condition$ 13""1 A holder can delete or cancel an e0isting crossing No #ho gets a better title than the transferor A holder in due course If a cheque is sto!!ed by the drawer(the bank cannot make%%%%%%%%%%% /ayment of cheque A holder of a cheque !utting a date on an undated cheque is termed as alteration of cheque No %%%%%%%%%%%%%%is checked against the numbers of the cheques issued to the customer at the time of !ayment( he serial number of the cheque