In 2012 Reserve Bank of India RBI Reduced the validity period of Cheques Demand Drafts Pay Orders an...........

Static GK (IBPS -CL) Banking Awareness

In 2012, Reserve Bank of India (RBI), Reduced the validity period of Cheques, Demand Drafts, Pay Orders and Banker's Cheques from 6 months to 3 months, from the date of issue of the instrument. Which section in the Negotiable Instruments Act, 1881, deals with Cheques?

This questions was previously asked in

IBPS Clerk Mains (28 Feb, 2021 Shift 1)

View All IBPSCl Previous Year Papers

Section 6

Section 5

Section 4

Section 7

None of the above

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Explanation:

- Section 6 of the Negotiable Instruments Act, 1881: It deals with "Cheques" and defines a cheque as a bill of exchange drawn on a specified banker and payable on demand. This is the correct answer.

- Section 5: This section defines a "Bill of Exchange," which is different from a cheque as it does not necessarily involve a banker.

- Section 4: It defines a "Promissory Note," which is a written promise to pay a certain sum of money to a specified person.

- Section 7: This section is related to the "Drawer," "Drawee," and "Payee" in the context of negotiable instruments, and not specifically related to cheques.

- Option 5, None of the above, is incorrect since Section 6 covers cheques.