JAIIB PPB Unit 15 - Payment and Collection of Cheques and Other NI

JAIIB PPB Unit 15 - Payment and Collection of Cheques and Other NI (Year: 2019)

1. In Sans recourse endorsement, liability of the endorser is excluded.

2. In facultative endorsement, the notice of dishonour is waived.

3. The 3 negotiable instruments are promissory notes, bills of exchange and cheque.

4. A paying banker is protected under NI Act in the following cases:

  • Forged endorsement in an
    1. i. order cheque under section 85 (1)
    2. ii. bearer cheque under section 85 (2)
    3. iii. draft under section 85 (A)
  • Material alteration in a cheque under section 89
  • Payment of a crossed cheque under section 128.

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