New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which section of the Negotiable Instruments Act, 1881

    provides that a promissory note, bill of exchange, or cheque is not invalid by reason that it is backdated?
    A Section 18 Correct Answer Incorrect Answer
    B Section 20 Correct Answer Incorrect Answer
    C Section 22 Correct Answer Incorrect Answer
    D Section 26 Correct Answer Incorrect Answer

    Solution

    Section 20 of the Negotiable Instruments Act, 1881 provides that a promissory note, bill of exchange, or cheque is not invalid by reason that it is backdated. However, the backdating must not be for the purpose of defrauding any person or making any other illegal transaction.

    Practice Next

    Relevant for Exams: