Banking · Negotiable Instruments Act
Which provision provides statutory protection to a Collecting Banker (the bank receiving payment for a customer's cheque) against potential liability to the true owner for conversion of the instrument?
- 1Section 171 of the Indian Contract Act, 1872
- 2Section 131 of the Negotiable Instruments Act, 1881✓
- 3Section 31 of the Negotiable Instruments Act, 1881
- 4Section 45ZA of the Banking Regulation Act, 1949
Correct answer
Section 131 of the Negotiable Instruments Act, 1881
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