Banking Awareness- Highlights of Negotiable Instruments (Amendment) Bill 2015:
Lok Sabha has passed the Negotiable Instruments (Amendment) Bill, 2015 that amends the Negotiable Instrument Act, 1881 that makes the Cheque-bounce filing cases more convenient for cheque Payees (Person who receives the cheque).
Highlights of Negotiable Instruments (Amendment) Bill 2015:
- The main amendment is the stipulation that the offence of rejection/return of cheque under the section 138 of Negotiable Instruments Act will be enquired into and tried only by a court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated.
- Section 138 of the Negotiable Act deals with the offence pertaining to dishonor of cheque for insufficiency, etc of funds in the drawer’s account on which the cheque is drawer for the discharge of any legally enforceable debt or other liability.
- The bill adds provision to specify the territorial jurisdiction of the courts in cases related to bouncing of cheques which was not present in the parent Act.
- It says that cases in this regards need to be filed only in a court in whose jurisdiction the bank branch of the payee lies.
- It also adds provision related to more than one case is filed against the same person before different courts for bouncing of cheques. In this matter, the case will be transferred to the court that has appropriate jurisdiction.
- The bill also amends the definition of cheque. Now it defines it as cheque in the electronic form which is signed in a secure system with a digital signature or using electronic system and drawn in electronic medium using any computer resource.
For More Banking Awareness Materials Click Here Below:
- Types of Banks
- Types of Accounts
- Types of Loans and its Operations
- Types of Chequesand its Categorizations
- RBI Roles and Functions