Skip to main content

Negotiable Instruments Terminology


  • Accommodation Bill- Bill of exchange (Hundi) which is issued without consideration is an accommodation bill and such hundies are not acceptable by banks for discount purpose.
  •  Account Payee- This is a type of crossing, restricting the payment of a cheques or a demand draft to payee through a bank account only.
  • Alongee- This is a white piece of paper attached to a cheque at the lower end of its backside, for the use of further endorsements.
  • Ante Dated Cheque- The instrument bearing a date prior to the date of presentation, are ante dated cheques.
  • Collecting Banker- A banker who collects the cheques and drafts from other banks on behalf of their customers, is a collecting banker.
  • Crossed Cheques- The cheques bearing the two transverse parallel lines across the face of it, with or without words are crossed cheques.
  • Forged Cheques- A cheque which does not bear the genuine signature of account holder or contains unauthenticated misleading alterations in the cheques.
  • Order Cheque- A cheque  which is payable to the other person on the instance of the payee, is an order cheque.

Comments

Post a Comment

Popular posts from this blog

Reasoning: Alphabet Test and Miscellaneous Series

Position of Alphabets A-   A- One brand B-   Bi- ttu D-    For -D F-   F- ix G-  G- iven H-   H- eight K-   K- elvin M-   M- 13  hero N-    14 th November P-    Pre- sixteen T-    T- 20 E-5 J-10 O-15 T-20 Y-25 C-3 F-6 I-9 L-12 O-15 R-18 U-21 X-24 G-7 L-7+5=12 Q-12+5=17 V-17+5=22 I-9 S-19 C-3 M-13 W-23
Post a Comment
Read more

Simple Interest

Simple interest formula is one of the methods of calculating the interest on a certain amount. First, it is important to recall the concept of interest and ways to calculate it. When you borrow money from a bank, there is an extra amount to be along with the amount you borrowed. That extra money that you pay is called interest. Some money lenders and financial institutions also charge this interest for the money borrowed. There are two types of interest levied upon: Simple Interest, and Compound Interest It should be noted that the simple interest is paid at the end of a specific time period and is always a fixed amount that the borrower has to pay. The   simple interest   is calculated using a formula which is described below along with an example question. Formula for Simple Interest Simple interest is calculated by multiplying the interest rate by the principal amount and the time period which is generally in years. The S.I. formula is given as: Simple Interest (SI) = P × T...
Post a Comment
Read more

Basic tips and tricks to solve coding-decoding

The approach to solve the questions of this section? Observe alphabets or numbers given in the code keenly. Find the sequence it follows whether it is ascending or descending. Detect the rule in which the alphabets/numbers/words follow. Fill the appropriate letter/number/word in the blank given. Some Basics which we need to learn before solving the questions of this topic are: Letter position  (A=1, B=2, C=3, D=4 …… Y=25, Z=26) Opposite position of letters  (A=26, B=25 …… Z=1) Opposite of each letter  (A is opposite to Z and B is opposite to Y and C is opposite to X …… and so on) Various types on which Coding and Decoding are classified are (as per Bank Exams): Letter Coding Substitution Mixed Letter Coding Mixed Number Coding LETTER CODING: In this type the real alphabets in a word are replaced by certain other alphabets according to a specific rule to form its code. The candidate is required to detect the common rule and answer the questions acc...
Post a Comment
Read more