BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is not considered as negotiable instrument underthe Negotiable Instruments Act, 1881?
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Bill of Exchange
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Promissory Note
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Share Certificate
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Cheque Payable to Bearer
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Explanation:
Detailed explanation-1: -A crossed cheque can only be paid in account & hence it is not a negotiable instrument.
Detailed explanation-2: -A cheque is a Negotiable Instrument, which can be further negotiated by means of endorsement and is payable on demand. A cheque payable to bearer is negotiable by the delivery thereof, and when it is payable to order is negotiable by the holder by endorsement and delivery thereof.
Detailed explanation-3: -(1) A “negotiable instrument” means a promissory note, bill of exchange or cheque payable either to order or to bearer.
Detailed explanation-4: -FDR is not a negotiable instrument.
There is 1 question to complete.