BANKING AFFAIRS

Detailed explanation-1: -According to section 4 of the NI Act, 1881, “A “promissory note” is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument.”

Detailed explanation-2: -The term “Negotiable Instrument” is defined as “a promissory note, bills of exchange, or cheque payable either to order or to bearer” under Section 13 of the Negotiable Instrument Act, 1881.

Detailed explanation-3: -Section 4 in The Negotiable Instruments Act, 1881.

Detailed explanation-4: -A promissory note is a financial instrument that contains a written promise by one person to another person to pay a definite sum of money either on-demand or in the future date. It is an unconditional promise to pay a definite amount to a payee.