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…
The important objective of cash management of an entity is that it has enough money available to pay for what it needs in the present and near future. It’s the actual inflow and outflow of cash, highlighting the business entity’s ability to meet obligations at any given time. The cash management system has several types…
Cash management challenges include poor cash flow forecasting, inconsistent revenue, late payments, high overhead costs, settlements or transactions in multiple currencies, regulatory changes, economic fluctuations, etc., which can strain the overall financial performance of an organisation. Cash flow refers to the real-time movement of money in and out of a business, showing the liquidity and…
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. The advantages of effective cash management of a business, Nowadays companies adopt Cash Management Systems designed and functioning…
Besides investment in Bank deposits, NRIs and PIOs can invest in various financial instruments in India with earnings being repatriable. These investments include stocks through portfolio investment scheme accounts, government securities, public sector undertaking Bonds, the National Pension Systems, or units issued by Infrastructure Debt Funds. Repatriation of all the foreign source investments and accrued…