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 the essential requirement for the endorsement as per Negotiable Instrument Act, 1881?
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It should be on the instrument
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It should be made by the holder or the maker
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Signatures should be in ink and not by pencil or rubber stamp
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It should contain unconditional order
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Explanation:
Detailed explanation-1: -It is not necessary to write the full name initial may be sufficient.
Detailed explanation-2: -It is not necessary to give notice of transfer of a negotiable instrument to the party liable to pay.
Detailed explanation-3: -Easily Transferable: A negotiable instrument is easily and freely transferable. There are no formalities or much paperwork involved in such a transfer. The ownership of an instrument can transfer simply by delivery or by a valid endorsement. Must be in Writing: All negotiable instruments must be in writing.
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