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?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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