A demand draft (DD) is a pre-paid instrument that allows a bank customer to transfer money to another individual or business at a different destination. The demand draft is originated at one branch of a bank drawn at another branch of the bank ordering to pay a sum of amount to the individual/business entity or…
Section 72 of the Indian Contract Act provides that a person to whom money has been paid by mistake must repay or return the same to the person who has made such payment. Implied law: If one pays money to his friend intentionally and the friend receives it without any agreement. That is called a…
Crossing a cheque gives financial institution-specific instructions on how to handle cash. Since Crossed Cheques can only be paid through a bank account. When simply two parallel transverse lines either with or without any words appearing on the face of a cheque, that cheque is called a crossed cheque. Normally cheques are crossed on the…
According to Section 19. of the NI Act 1889, A promissory note or bill of exchange, in which no time for payment is specified, and a cheque, are payable on demand. Section 31 of the Negotiable Instruments Act, 1881 covers the liability of the drawee of a cheque. The section states that the drawee of…
A negotiable instrument like a cheque, bill of exchange, or promissory note is called a forged instrument when forgery takes place in the signature of the drawer, the signature of the endorser, alteration in name of the payee, alteration in amount, alteration in date, etc. If the forged endorsement is a nullity, then it will…
A banker collects a cheque for his customer in the capacity of an “agent for collection”, the banker collects the cheque on behalf of his customer, which also when presented to him. If a customer gives an open cheque i.e. a cheque uncrossed, the banker has to cross the cheque before it is sent for…
Section 15 of NI Acts 1881 defines endorsement (Indorsement) as under When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a…
The Negotiable Instrument Act, of 1881 was enacted on 9th December 1881 to define and amend the law relating to Negotiable Instruments i.e. Promissory Notes, Bills of Exchange, and Cheque. The act came into force on the first day of March 1882. The Act extends to the whole of India but nothing herein contained affects…
Under the Negotiable Instrument Act a cheque is a bill of exchange it is an order on the drawee bank to pay the amount specified in it to the payee or the bearer until and unless the amount mentioned in the cheque is paid, the disposition of property therein will not take place. Section 19…
Cash management refers to efficiently handling a business’s cash. The cash Management system covers a range of activities including managing bank accounts, ensuring sufficient liquidity to meet short-term obligations, optimizing cash flows, and making strategic investment decisions. Despite the importance of cash management, many organizations rely upon error-prone spreadsheets for cash forecasting methods. Such forecasts…