Question

The transactions involving Negotiable Instruments in India is regulated by the law known as

• A. Contract Act of 1872
• B. Negotiable Instrument Act of 1881
• C. Payment and Settlements Act of 2007
• D. Banking Regulation Act of 1949

Answer 1

Answer:

B. Negotiable Instrument Act of 1881

NEGOTIABLE INSTRUMENTS:

1. Promissory Note : Sec 4 

2. Bill of Exchange : Sec 5 

3. Cheque : Sec 6 

• Payable either to order or to bearer

• Negotiable instruments are money / cash equivalents 

• These can be converted into liquid cash subject to certain conditions. 

• They play an important role in the economy settlement of debts and claims

• Sec 21 of Indian Currency Act, Currency note is not considered as Promissory note and Negotiable instruments. 

• The transactions involving NI in our country are regulated by the Law Known as the NI Act 1881