negotiable instruments 1229853942146010 2

8/8/2019 Negotiable Instruments 1229853942146010 2

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Pastoral&Agricultural

stage Barter System

Handicrafts&Guildstage

Money as amedium oftrade

Domestic&Factory

stage

GrowthofEconomy &Commerce

GLOBALIZATION.

Complex

system,

Confusion,

slow

growth


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A Negotiable instrument means promissory note, bill ofexchange, or cheque, payable either to order or to bearer

Freely Transferable

Absolute Title

InWriting

Unconditional

Certain Sum

Payee must be a certain

PersonSignature a must.

CertainTime

Delivery Essential

Stamping is Mandatory.


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Assignment

Negotiation

Endorsements


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Promissory Note

In writing, signed, stamped

Unconditional promise topay

Money only

Certain party

On demand or certain date

Certain sum

Parties Drawer, Payee


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Bill of Exchange Writing, signed,accepted, stamped

Unconditional order topay

Money only

Certain party

Certain sum

Parties Drawer,Drawee & Payee


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CHEQUES

Writing, signed

Unconditional order

Issued by specifiedbanker, certain payee

On demand Certain amount

Must bear a date


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HUNDIS

Drawn in any locallanguage in accordancewith the custom of theplace

For transfer of moneywithout its actualphysical movement


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CHEQUE BILLSOF EXCHANGE

Insufficient balance.

Invalid Signature.

Specific Reasons eg a/c

closed, stopped payment.

Cancellation on cheques.

Tampered cheques. When payable at par is not

mentioned for outstationcheques.

Non-acceptance by Drawee.

Drawee does not accept within24 hrs

Drawee not entitled to accept.

Drawee is a fake person, ordisappears.

Bill is conditional.

Not signed by all drawees(in caseof partnership)

Non payment by Drawee atmaturity


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Fraud Intentional wrong doing

To cause loss or harm

To get personal benefit

Measures To Avoid

Fraud.o After online payment make sure

you call customer care ofyourbank.

o Make sure you keep secrecyregarding your negotiable

instrument.


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The JVG Scandal Troubles started in June 1997 Issued Post dated cheques for

principal & interest which bounced. Investors complained under NI act.

Government asked to wind up the company

.

Three Held With Shahrukh

Khans Credit Cardo

On Feb10, VinayVijayT

ambe (22),James Paul Peremal (28), Shekar Jadhav (44),

went to Shoppers Stop and did shopping of

Rs.25000 with Shahrukhs credit card.


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Funds transfer through EFT.

Common egs

Direct Deposit

Plastic money

ATMs

Points of Sale

Mobile banking

Cheque Truncation

Need for Legislations &

Regulations


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Individual Feels FreeTo Trade Globally.

Smooth Flow of Trade.

Negotiable Instruments

As Legal Proof


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negotiable instruments 1229853942146010 2

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