Section 31 (2) of the Reserve Bank of India Act, 1934 prohibits of making or issuing of a expressed to be payable to bearer thereof

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	cheque
B	bill of exchange
C	promissory note
D	demand draft

Explanation:

Detailed explanation-1: -(2) Notwithstanding anything contained in the Negotiable Instrument Act, 1881 (26 of 1881), no person in 1[India] other than the Bank or, as expressly authorised by this Act, the Central Government shall make or issue any promissory note expressed to be payable to the bearer of the instrument.

Detailed explanation-2: -(3) If any person contravenes the provisions of section 31, he shall be punishable with fine which may extend to the amount of the bill of exchange, hundi, promissory note or engagement for payment of money in respect whereof the offence is committed.

Detailed explanation-3: -Section 31 of the Reserve Bank of India Act provides that no person in India other than the Bank or as expressly authorised by this Act, the Central Government shall draw, accept, make or issue any bill of exchange, hundi, promissory note or engagement for the payment of Page 3 3 money payable to bearer on demand.

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