banking notes

             SPECIAL TYPES OF INDIVIDUAL CUSTOMERS
             • The Banker must ensure that the customer is competent to contract
             • Account opening form should be filled in all respects by the account holder
             • Banker should obtain his specimen signature for verification in future
             • Banker should issue a cheque book to the customer indicating his account number
             • Pay-in-slips for making deposits
             • Banker should obtain standing instructions for operation of the account
             • Purpose: to identify the person for whom the account is being opened.
             • At present, all accounts, whether current, savings or fixed, have to be introduced
             • Who can Introduce: Existing account holder, A confirmed employee of the bank, A locally well-known person, another bank
             • Now it can be through ID Cards, passports etc.
             • Safeguard against inadvertent overdraft
             • Section 13 of the Negotiable Instruments Act 1881 states that Promissory Notes, Bills of Exchange and Cheque payable either to order or to bearer are negotiable instruments.
             • Cheque: Section 6 of the N.I.Act defines Cheque as " A Bill of Exchange drawn on a specified banker and not expressed to be payable otherwise than on demand"
             • Bill of Exchange: Section 5 of N.I.Act defines BoE as " an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money to a certain person or to the order of that certain person or to the bearer of the instrument
             • Promissory Note: is 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.
             • Monetary nature and Certainty
             • Negotiable Instruments are easily transferable- Transferability does not make an instrument negotiable
             • Transferable by delivery...

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banking notes. (1969, December 31). In MegaEssays.com. Retrieved 12:38, March 28, 2024, from https://www.megaessays.com/viewpaper/82646.html