alexa Missed Call Number
Home Articles Negotiable Instruments

Negotiable Instruments Research Team | Updated On Monday, November 17,2014, 05:03 PM

5.0 / 5 based on 1 User Reviews

Negotiable Instruments




According to section 13 of the Negotiable Instruments Act, 1881, a negotiable instrument means "promissory note, bill of exchange, or cheque, payable either to order or to bearer".

Negotiable instrument is a written document that represents an unconditional promise to pay a specified amount of money on the demand of its owner. Examples include checks, promissory notes and bill of exchange. Negotiable instruments can be transferred from one person to another.

Types of negotiable instruments

According to the Negotiable Instruments Act, 1881 there are only three types of negotiable instruments they are;

  • Promissory note
  • Bill of exchange
  • Cheque

However many other documents are also recognized as negotiable instruments on the basis of custom and usage, such as

  • Hundis
  • Treasury bills
  • Share warrants, etc.

But they must possess the features of negotiability.


Did you find this article useful? You can Rate us
5.0 / 5 based on 1 User Reviews
Article Author Research Team

The research team at comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

Subscribe to our Youtube Channel

Get the Best Financial Advice on Personal LoanClick Here

Most Popular

Why one must never neglect estate planning

07 January 2014, Tuesday

Things to Know About Hybrid Mutual Funds

26 November 2013, Tuesday

What is Car Insurance? Why is it important?

21 October 2009, Wednesday

Latest Stories

Banking system in India

17 November 2018, Saturday

Nationalized Banks In India

16 November 2018, Friday

Review Your Insurance Plans With IndianMoney

16 November 2018, Friday

Personal Loan For Students

15 November 2018, Thursday

Aadhaar Pay App

14 November 2018, Wednesday

Popular Tags

Get the Best Financial Advice on Personal LoanClick Here


Get It now!