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Question

Which among the following acts lays down the law relating to payment of a customer's cheque by a banker and the protection available to a banker?

A Indian Contract Act 1872 Correct Answer Incorrect Answer
B RBI Act 1934 Correct Answer Incorrect Answer
C The Negotiable Instrument Act 1881 Correct Answer Incorrect Answer
D Bankers Books Evidence Act 1891 Correct Answer Incorrect Answer
E SARFAESI Act 2002 Correct Answer Incorrect Answer

Solution

  The Negotiable Instruments Act, 1881 lays down Laws relating to the payment of a customer's cheque by a banker and the protection available to a banker. The relationship between a banker and customer is the debtor-creditor relationship the banker is bound to pay the cheques drawn by his customer. This duty on the part of the banker, to honor his customers' mandate, is laid down in Section 31 of the Negotiable Instruments Act.

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