BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The holder can convert special crossing into general crossing or he can cancel any crossing under his signature
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The holder can cross a cheque
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If a cheque is simply crossed, he can add special crossing
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If cheque is simply or specially crossed he can add the words ‘not negotiable’ in it
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Detailed explanation-1: -According to Negotiable Instrument Act, 1881, a promise to pay the bearer is not the type of promissory note s promissory note can be defined as a written document which states the promise to pay the sum of money to a specified person. Was this answer helpful?
Detailed explanation-2: -A crossed cheque can only be paid in account & hence it is not a negotiable instrument.
Detailed explanation-3: -Under the Negotiable Instruments Act, 1881, Promissory notes are defined under section 4 of the Act as an instrument in writing 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-4: –A banker who has in good faith and without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received such payment.