As per Section 138 of Negotiable Instruments Act 1881, Cheque drawn for payment for discharge of any debt or other liability, is returned by the bank unpaid due to insufficient funds or exceeding the arrangement (in case of CC/OD account), such person is deemed to have committed an offence. Read more…
In this series, this is the study material for bank promotion (Notes on Negotiable Instruments Act). Read the underlined words carefully as they are important part of definition on which questions may be based. Negotiable Instrument Act 1881: Applicable to entire India including J&K. NI Act came into effect on 1st Read more…
Promissory note and Bill of Exchange are defined under Negotiable Instrument Act 1881 as under: Promissory note (Section 4) 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 Read more…
Bank Rate Rate at which RBI lends to commercial banks. This tool is used by central bank for short-term purposes. Increase in Bank Rate by RBI is indication to banks to increase lending and deposit rates. Repo Rate Rate at which the RBI lends short-term money to the banks against Read more…
Reserve Bank of India Act, 1934 Reserve Bank of India Established RBI on 01.04.1935 Nationalized on 01.01.1949 Paid up capital – Rs. 5 crore Managed by a Central Board of Directors – (One Governor, 4 Dy. Governors & 15 other Directors) and 4 Local Boards (at 4 metros) 1st Governor – Read more…