Negotiable Instruments (Amendment) Bill passes by Lok Sabha, 2015 [ Current Affairs ]
About Negotiable Instrument Bill: A negotiable instrument is a type of document in which it guaranteeing the payment of a precise amount of money, either on demand, or at a fixed time to the payer whose name is on the document.
- Negotiable instruments include promissory notes, bills of exchange, banknotes, and cheques.
- Common models of bills of exchanges and promissory notes originated in China, where special instruments called feitsyan were used to safely transfer money over long distances during the ruler of the Tang Dynasty in the 8th century.
About Bill passing:
- Negotiable Instruments (Amendment) Bill 2015 has been passed by Lok Sabha using a voice vote.
- The bill finds to improve The Negotiable Instruments Act, 1881 in order to make easier of cheques - bounce filing for check payees.
Key features of Bill
- It will add provision to identify the regional jurisdiction of the courts in cases related to bouncing of cheques.
- It will allow to be filed such cases only in a court in whose jurisdiction the bank branch of the payee lies.
- It has also added provision related to one person’s more than one case is filed in different courts for bouncing of cheques.
- It redefines cheques in the electronic form which is signed in a secure system with a digital signature or using electronic system and provides print of signed cheques from computer resource.
- Published on: August 7, 2015