NI Act, Nomination & TDS

Mr. X lost a ring worth Rs.
50,000/- and a bearer

cheque favoring “X” worth Rs.50,000/-
Mr. Y found them. gave the cheque and ring to a
jewelers shop and purchased a new chain.

Mr. X lodged a police complaint. police can recover

ring from jeweler shop and give it to Mr. X but,

they cannot recover the cheque or its equivalent
from jeweler shop,
Negotiable Instruments Act 1881
YARDSTICKS, CHALLENGES, OPPORTUNITIES & A FEW THOUGHTS

Internal Reference for IDBI
Importance of Negotiable Instruments Act 1881
Presentation Structure
Part 1
1. Outlook of Banking
2. Negotiable Instruments Act 1881
Part 2
3. Banker – Customer Relations
4. Nomination & TDS – IDBI Protocol’s
I N F L A T I O N
Internal Reference Only
COF MARGIN & LENDING RATE

SPREAD
Negotiable Instruments Act
1881
Reserve Bank of India Act - 1934
Banks Shall continue to discharge their

duties prescribed under various
Acts/Regulations/Rules including the
Legislation Applicable to Banking
Agencies involved directly or indirectly with banking

service. The application of various sections, statutes and
clauses are called Banking Law and Practice.
1.Negotiable Instruments Act, 1881
2.Reserve Bank of India Act, 1934
3.Banking Regulation Act, 1949
4.Indian Contract Act, 1872
5.Limitation Act, 1963
6.Indian Company’s Act, 1956
7.Indian Company’s Act 2013
8.Indian Partnership Act, 1932
9.Indian Stamp Act, 1899 1872
10. Income Tax Act, 1961.

11. Commercial Tax Act,
12. Sales Tax Act,
13. SARFAESI Act, 2002
14. FEMA, 2000
15. Consumer Protection Act, 1986
16. Right to Information Act, 2005
17. Criminal Procedure Act, 1973
18. Payment & Systems Act, 2007
19. Transfer of Property Act, 1882
20. Sale of Goods Act, 1930
21. Registration Act, 1908
22. Bankers Book Evidence Act, 1891
23. PMLA, 2002

24.General Clauses Act, 1897
25.MSMED Act, 2006
26.Indian Trust Act, 1882
27.Indian Currency Act,
28.Banking Companies (Acquisition & Transfer of
Undertaking) Act, 1970
29.Wealth Tax Act,
30.DRT Act,
31.Provident Fund Act,
32.Gratuity Fund Act,
33. Indian Majority Act, 1875

34. Hindu Minority & Guardianship Act, 1956
35. Limited Liability Partnership Act, 2008
36. Hindu Succession Act, 1956;
37. Society Registration Act, 1860
38. Married Women Property Act, 1874
39. Indian Succession Act, 1925
40. Ombudsman Scheme, 2006
41. Cyber Law Act, 2000
Important Committee’s in Banking
1. Goiporia Committee Customer Service In Banks
2. Talwar Committee Customer Service Reforms
Computerization & Public

3. Rangarajan Committee Sector Disinvestment
4. BASEL Committee Capital Adequacy of Banks

Frauds & Malpractices in
5. Ghosh Committee Banks
6. Mitra Committee Legal Aspects of Bank

Frauds
Willful Defaulters &
7. SS Kohli Committee Rehabilitation of Sick
Industrial Units
Important Committee’s in Banking
8. Kalyan Sundar Committee Introduction of Factoring

Services in India
9. Y V Reddy Committee Reforms in Small Savings A/c
10. RV Gupta Committee Agricultural Credit

Delivery
11. Prof V S
Vyas Flow of Credit to
12. Ms Usha Financial Inclusion
Agriculture
Thorat Inspection System Of Banks &
13. Narsimham Committee Cash Credit System
14. Rashid Jilani Committee Working Group on Surveys

Due to increase in business, need was felt

for payment mechanism.
It took long time to get recognition.
Bill of exchange was used in 12th

centuries.
Negotiability of promissory note was
allowed by British Courts in 1704.
In India, the Negotiable Instrument Act was

enacted during 1881 and came into force
w.e.f. 1st March 1882.
Originally it had 137 Sections;
Section 138 to 142 were added in 1988;
Section 143 to 147 were added in 2002;
At present it has 147 sections and 17 Chapters;
NI Act is applicable through out India including

Definition
Features
Negotiable Instruments Act 1881 – Monitoring Aspects
• Cash Transaction Report (CTR) – Rs. 10 lac and above.

• Suspicious Cash Transactions (STR) – Summation of Transactions.
• Issuance of DD’s > 50,000 in cash; PAN number requirements –
Form 60/61.
Suspicious Transaction
Means a transaction whether or not made in cash, Acting in
Good Faith, gives rise to a REASONABLE GROUND OF SUSPICION
that it MAY INVOLVE the proceeds of crime or APPEARS TO BE
made in unusual or unjustified circumstances, appears to
have no economic rationale or bonafied purpose.
• Multiple A/c’s under same name.

• Same funds moved among several A/c’s.
• Fixed Deposits being used as securities for getting loans.
• Instruments with multiple endorsements.
• Single Cash deposit of many high denomination notes.
Negotiable Instruments Act 1881 – Monitoring Aspects
IDBI Bank’s Monitoring Aspects ??
• Insisting cash payment of chqs drawn in fvg firm, without routing

through firm a/c
• Deposit by Chqs/DDs re’cd from sources not connected with customer’s
declared line of business
• Frequent withdrawals in cash by big customers, instead of chq
transactions
• Sudden surge in activity levels
• High value deposits in new a/cs followed by a series of withdrawals
leaving small balances
• Frequent operations in safe deposit lockers followed by cash deposits
• Request for closure of new a/cs where high value transactions were
routed through and funds withdrawn immediately
• Letter of thanks sent to the customer / introducer returned undelivered
Sec 4 Promissory Note

Sec 5 Bill of Exchange
Sec 6 Cheque
Sec 7 Definition of Drawer - Drawee
Sec 8 Holder of a Promissory Note
Sec 9 Holder in Due Course
Sec 10 Payment in Due Course
Sec 14 Aspect of NEGOTIATION
Sec 15 Endorsement
Sec 18 If Words and Figure Mismatch - Pay by Words
Sec 20 Incohate Instrument
Sec 80 On Bill of Exg, if no interest % is mentioned - It is taken as 18%
Sec 89 Materially Altered Instrument - Protection to Banker
Sec 99 Noting of Instrument (Returned)
Sec 100 Protest of Instrument (Returned)
• What is negotiability ?
Negotiability means transfer of instrument to
another person so as to constitute him holder.
Elements of Negotiation –
1.Further transfer without any restriction;
2.Transferee taking the instrument for value and
in good faith, gets better and absolute title
despite any defect in the title of the transferor.
3.Negotiation of bearer instrument by delivery
only and that of order by endorsement and
delivery.
Features of a Negotiable Instrument
 A negotiable instrument is one which is freely used by the

parties in their business deal as a medium of payment .
 The word ‘negotiable’ means the transfer of ownership of
the instrument from one person to another person for the
purpose of consideration.
 The instrument may be defined as a written document
which creates a right in favor of some person.
 Negotiable instrument means include Promissory Note, Bill
of Exchange and cheque payable to order or bearer.
 CURRENCY NOTE IS NOT A NI – it is governed BY INDIAN
CURRENCY ACT.
FOUR ESSENTIAL FEATURES OF NEGOTIABLE INSTRUMENT
1. The property in a negotiable instrument, i.e. the complete

right of ownership, and not merely the possession passes,
in the case of bearer instruments, by mere delivery, and in
case of order instruments, by endorsement and delivery.
2. The holder in due course is not, in any way, affected by the
defect of the title of his transferor or of any prior party.
3. The holder in due course can sue upon a negotiable
instrument in his own name.
4. The holder in due course is not affected by certain defense
which might be available against previous holders, e.g
fraud to which he is not a party.
VARIOUS NEGOTIABLE INSTRUMENTS

Promissory Note, Bill Of Exchange and Cheque are the 3
basic negotiable instruments named in NI Act.
The following are not

The following are also negotiable Instruments:
considered as negotiable
instruments:- Deposit Receipt,
NSC & Postal Order,
Demand Draft, Share Certificate,
Traveller Cheque, Gift Bill of Lading,
Cheque, Dividend Warrant, Lorry Receipt,
Interest Warrant, Bankers’ Airway Bill,
Cheque, Pay Order, Railway Receipt,
Commercial Paper. Stock Invest,
Dock Warrant
BILL OF EXCHANGE
SPECIMEN OF A DEMAND BILL:

Mumbai
09.12.2010
Rs. 50000/-
On demand, pay Mr. Akhilesh Verma or order, the sum of Rupees fifty thousand
together with interest at 8%, for value received.
To
Mr. Rakesh Singh S.P.Singh (signature)
A usance bill could be drawn in three ways: On

31.12.200X pay
Three months from date, pay _ Three
months from acceptance pay
DEMAND PROMISSORY NOTE

CHEQUE IN NEW FORMAT

SAFE/UNSAFE CHEQUE
Sec Important contents relating to

1 Indian Paper Currency Act 1871 not to be affected by the
provisions of this act.
4 Promissory note defined -
Promissory Note is an Instrument in Writing containing an
unconditional undertaking or promise, signed by the maker to pay a
certain sum of money to or to the order of a certain person or to the
bearer of the instrument;
“I Promise to pay a sum of Rs….to Mr…or to the order or to the bearer”
5 Bill of exchange defined –
It is an instrument in writing containing an unconditional order
signed by the maker directing a certain person to pay a certain sum
of money only to or to the order of a certain person or to
the bearer of the instrument.
Types- Inland Bills, Foreign bills, time bills, demand bills, trade
bills, accommodation bills, clean bills, documentary bills.
6 Cheque defined (also include electronic cheque and truncated
cheque)- is a Bill of Exchange drawn on a specified Bank and not
expressed to be payable otherwise.
Sections Important contents relating to
7 Parties to Bill of Exchange –
Drawer – The persons who orders to pay (say seller of goods),
He is the creditor.
Drawee – Who is directed to pay (say a buyer of goods).
He is debtor.
Payee – Is the person who is authorized to obtain the
payment.
8 Holder defined –
is a person who is entitled in his own name to the possession
thereof. Legal right to possess is enough. Actual possession is not
essential.
9 Holder in due course defined– is a person (payee or endorsee) who must
have instruments in possession.
Possession must have been obtained for valuable and lawful consideration
and not as a Gift;
He obtains the cheque in good faith without sufficient reason to believe that
any defect existed in the title of the person from whom he obtained it.


10 Payment in due course defined – Payment is considered to
be payment in due course –
 Payment is in accordance with the apparent tenor of the

instrument;
 Payment must be made in good faith and without
negligence;
 Payment must be made to the person in possession of the
instrument;
 Payment must be made under circumstances which do not
afford a reasonable ground to believe that he is not
entitled to receive the payment;
 Payment must be made in money only;
Sec Important contents relating to

11 Inland instrument defined –drawn and made payable in India. A BE
drawn or made in India & payable in or drawn upon any persons in
India.
12 Foreign Instruments defined – An instrument which is not an Indian
Bill.
13 Negotiable instruments defined indirectly – NI means and include PN,
BE and cheque payable to order or bearer.
14 Negotiation defined – Transferring an Instrument from one person to
another in such a manner so as to convey title and to constitute the
transferee the holder of the instrument.
Bearer Instrument – Negotiation by delivery;
Order Instrument – By Endorsement and delivery

15 Endorsement and endorser defined.
ENDORSEMENT means – Signing on the face or backside or even on a paper

attached or on a stamp paper for the purpose of negotiation.
A person who signs is known as ENDORSER
16 Endorsement in blank and full and endorsee defined.

ENDORSEMENT IN BLANK – If the endorser signs his name only
without any words or directions;
Effect of Blank endorsement - An order instrument becomes
payable to bearer
ENDORSEMENT IN FULL – If an endorser signs his name and adds
a direction to pay the instrument to or to order.

17 Ambiguous instruments – Where the instrument is drawn in
such a manner that it can be construed both as PN or BE.
In the following cases, the instrument is taken as ambiguous;
(a)Where drawer and drawee are the same person.
(b)Where drawee is a fictitious person.
(c)Where drawee is a person incapable of entering into a
contract.
18 Difference in amount in words and figures. Amount in words
to be paid.
20 Inchoate stamped instruments –Holder has implied authority
to complete the instrument.
An inchoate instrument is an incomplete instrument which is
legally valid i.e bears the signatures, but some features are
incomplete.
FEATURES OF BILL OF EXCHANGE

1. The order to pay a bill must be unconditional one.
2. The order to pay must be made in writing on the bill.
3. The bill must be signed by the drawer of the bill.
4. The order to pay under a bill must be addressed to a certain person
which includes individuals, firm, company, etc.
5. The amount to be paid under a bill must be certain one.
6. The money under a bill must be paid in legal tender currency.
7. The amount should be payable either on demand or at a fixed
determinable future time.
8. The bill must be duly stamped.
9. A bill of exchange like a promissory note may be written in any
language.
RULES FOR DUE DATE CALCULATION

 Demand bill is payable on demand or at sight.
 Usance bill should be presented for acceptance within a
reasonable time.
 The drawee is allowed 48 hours excluding public holiday to
accept the bill.
 If a usance bill is payable after date, its due date is calculated
from date of the bill and if it is payable after sight, its due date is
calculated from date of acceptance.
 3 days grace period is given to every Usance Promissory Note or
Bill of Exchange.
 Where the due date is already given by the drawer, no grace
period to be given.
 Instruments payable in installments, the days of grace are to be
allowed for each installment .
RULES FOR DUE DATE CALCULATION

 When the maturity date is a public holiday :
As per sec 25 of N I Act ; such instrument be
payable on the next preceding business day

i.e. the previous business day .
Declaration of Public Holiday : u/s 25 of N I Act

1881 , the public holiday includes Sunday and any
other day declared by the Central Govt. by
notification in the Official Gazette (this power has
been delegated to state govt).
Sec. Important contents relating to

31 Banker’s obligation to pay cheque & compensate drawer for
wrongful dishonour (provided- sufficient funds are available;
funds are meant for payment; proper demand).
32 Liability of maker of note and acceptor of a bill.
33 Several drawees of a bill. Not to be considered partners.
35 Liability of endorser-to compensate holder of dishonour.
36 Liability of prior parties to holder in due course.
37 Liability of maker, drawer (of BOE) till accepted and acceptor,
is that of principal.
38 Prior party , a principal to subsequent parties.
40 Discharge of endorser’s liability.

82-83 Discharge from liabilities –by cancellation, release &payment and
allowing more time than 48 hours to accept.
84 When cheque not duly presented and drawer damaged thereby

85-1 Paying banker protected by payment in due course of an order
cheque which is properly endorsed by the payee or his agent
85-2 Protection to paying banker in case of a bearer cheque

85-A Protection to paying banker in case of Bank drafts
87 Material alteration renders N.I. void
88 Acceptor/endorser bound not withstanding previous alternation
89 Protection to paying banker for materially altered instrument

117 Rules for compensation for dishonor
118-119 Presumptions with regard to NIs
120-122 Estoppels – validity , capacity of payee, signature of payee
123 General Crossing –
Crossing means two transverse lines on the face with or
without words such as & Co, not negotiable, payee’s a/c
only, etc. Crossing is applicable in case of cheque & DD only.
124 Special Crossing – When a cheque bears across its face
name of a Bank, with or without words (lines not essential)
125 Who can cross- drawer, holder, banker;

CROSSING – GENERAL/SPECIAL
Sections
126-127 Payment of cheque crossed generally or specially
128 Payment in due course of crossed cheques
129 Paying banker liable to the true owner for loss when payment not
made in due course
130 “Not Negotiable “ crossing –transferee does not get better title
than that of transferor.
131
Banker – Customer; Legal Relationship
Legal Relationships (Banker-Customer)
• General Relationship • General Relationship

 Debtor-Creditor  Deposit A/c
 Creditor-Debtor  Loan A/c
• Special Relationship • Special Relationship
1. Bank as Trustee 1. Cheque Collection
2. Bailer-Bailee 2. Bonds Sale (Bailer)
3. Agent-Principal 3. Commission Agent
4. Lessor and Lessee 4. Locker (Lessee Bank)
5. Custodian 5. DEMAT account
6. Guarantor 6. BG - Contingent
Sec 148 Indian Contract Act, 1972, defines ‘Bailment’
Sec 31 Term Guarantee of Indian Contract Act
Sec105 The Trans of Prop act 1882 lessor-lessee
Sec 182 The TP Act 1872 defines Agent
Sec 3 Ind Trust Act 1982 defines ‘Trust’ & Sec 15 “Trustee”
Rights and responsibilities of a customer
IDBI Bank Customer Rights’ Policy 2018
– Right to Fair Treatment

– Right to Transparency, Honest and Fair Dealing
– Right to Suitability
– Right to Privacy
– Right to Grievance Redressal and Compensation
Relationship as debtor and creditor.

On the opening of an account, the banker assumes the position of a debtor
Banker becomes a creditor of the customer who has taken a loan
Banker as a trustee.
If the customer deposits securities or other values with the banker for the
safe custody, the letter acts as a trustee of his customer
Banker as an Executor
The person appointed as an administrator of the deceased is known as
executor
Banker as an Administrator
The bank may be appointed for the administration of a property and then
the banker will be called the administrator
Banker as an agent.
For example, he buys or sells securities on behalf of his customer, collects
cheques on his behalf and makes payment of various dues of his customer.
Other special relationship with the customer, obligations of a banker

1. The obligation to honor the Check/Cheques
2. The obligation to maintain the secrecy of the customer accounts
Rights of a Banker
Rights of general lien.

Lien means the right of the creditor to retain the goods or securities
owned by the debtor until the debt due from him is repaid.
The right of the set-off.

A banker possesses the right of set-off which enables him to combine
two accounts in the name of the same customer and to adjust the
debit balance in one account with the credit balance in the other.
Banker’s right of appropriation.

If the customer has more than one account or he has taken more than
one loan from the banker, the banker has the right to appropriation
these loans by the accounts.
Right to charge interest, incidental charges

a banker has the implied right to charge interest on the loans granted to the
customer. In the same way, incidental charges like service charges,
processing fees, appraisal charges, panel charges may be imposed by
the banker to the customer
Right to Produce Books of Accounts

Under Banker’s Books of Evidence Act - Proof of entries in books
Subject to the provisions of this Act, a certified copy of any entry in a

banker's book shall in all legal proceedings be received as prima facie
evidence of the matters, transactions and accounts therein recorded in every
case where, and to the same extent as, the original entry itself is now by law
admissible, but not further or otherwise.
Right under Garnishee order
The term ‘garnishee’ is derived from the Latin word ‘garnish’ which means ‘to
warn’. It is a notice that the bank shall not transact until the Court
informs. Garnishee order is issued by a competent court
The Banking Companies (Nomination) Rules, 1985
Published vide S.O. 264(E), dated 29.3.1985,

published in the Gazette of India,
Ext., Pt. II, Section 3(ii), dated 29.3.1985pp.10-18.
IDBI Bank/2019-20/15/BOSPD/15 (21 Pages) Dt: April 1,

2019
NOMINATION FACILITY IN BANK ACCOUNT
No Need to follow the

departed.
NOMINATION FACILITY IN BANK ACCOUNT
Nomination facility was introduced by a notification

dated 29th March 1985 in the Banking Regulations
Act, 1949 Sec 45-ZA to 45-ZF.
Nomination are available for:

1) Deposit Accounts
2) Safe Custody Accounts and
3) Safe Deposit vault accounts
NOMINATION
Nomination is mentioned in following section of
Banking Regulation Act 1949
Particulars Acceptance of Pay/Deliver only
Nomination to nominees
Deposits Section 45 ZA Section 45 ZB
Safe Custody Section 45 ZC Section 45 ZD
Safe Deposit Section 45 ZE Section 45 ZF

Lockers
Salient features of Nomination

 Nomination facilitates faster and easier
release of funds/articles without insistence
on Succession Certificate /Probate of Will.
 Nomination facility is available to account
holders operating current accounts, savings
bank accounts and all types of term deposit
accounts, safe deposit lockers or safe
custody of articles.
 Nomination facility is intended for
individuals and sole proprietary concerns.

The nomination to be made in favour of only
individual not in favour of Trust, Society etc.
Nomination can be made in favour of one
person only. It can be made in existing or new
accounts and can be cancelled or changed
subsequently by the depositors.
Government Deposit Schemes allow more than
one nominees in their accounts. Such as PPF,
Sukanya Samriddhi Scheme, Senior Citizen
Saving Scheme, PF, Gratuity etc.

Nomination cannot be made in accounts where
deposits are held in a representative capacity e.g.
trust accounts etc. and in accounts of partnership
firms, H.U.F., companies, associations, clubs etc.
In case of a joint account of individuals, nomination
should be made by all depositors jointly.
A non - resident can be nominated as a nominee in
a resident account. In case of non-resident
nominees, the amount entitled to him from the
account(s)/deposit(s) of a deceased person, will be
credited to his NRO account.

 Minor can not make a nomination in self operated
minor accounts.
 In case of guardian operated minor's account,
nomination can made by guardian.
 Nomination favouring the minor is permitted on the
condition that the accountholder, while making the
nomination, appoints another individual, not being a
minor, to receive the amount of the deposit on behalf
of the nominee in the event of the death of the
depositor during the minority of the nominee.

Nomination in TD & KCC accounts

A nomination will continue to be in force
even on renewal of term deposit, unless
specifically cancelled or changed.
 Notation that 'Nomination registered on ________' will be
made in FDR/Pass Book/Statement on registering the
Nomination.(Name of nominee will not be mentioned
except when it is specifically requested by customer).
 NOMINATION as per KCC Deceased Case Norms (Affidavit

Basis)
NOMINATION IN PENSION ACCOUNT

Nomination facility is available for savings bank
accounts opened for credit of pension. However,
Banking Companies (Nomination) Rules, 1985 are
distinct from the Arrears of Pension (Nomination) Rules,
1983 and the nomination exercised by the pensioner
under the latter rules for receipt of arrears of pension
will not be valid for the purpose of deposit accounts
held by the pensioners with banks, for which a separate
nomination is necessary in terms of the Banking
Companies (Nomination) Rules, 1985 in case a
pensioner desires to avail of nomination facility.
NUMBER OF NOMINATIONS

More than one nominee facility is available in
Government deposit scheme. As per Banking
Regulation Act, single nomination facility is available in
bank except in one case of Safe Deposit Lockers.
Type of Account Nature of Account Number of Nominee(s)
Deposits Single/Joint One only
Safe Custody only Single One Only
Safe Deposit Lockers only Single One Only
Safe Deposit Lockers Joint – E/S One only
Safe Deposit Lockers Joint – F/S One only
Safe Deposit Lockers Joint – Jointly Operations Each can nominate one
(As per IBA max. 2)
NOMINATION FORM
Account Registration Cancellation Variation
DEPOSITS DA -1 DA -2 DA -3
SAFE SC -1 SL -2 SL -3

CUSTODY
SAFE SL -1 SL -2 SL -3
DEPOSIT or SL1A
LOCKER (JOINT A/C)
IDBI Bank/2019-20/15/BOSPD/15 (Page - 3) Dt: April 1, 2019

NOMINATION & ACKNOWLEDGEMENT

Nomination is compulsory in all single named accounts.
Where the account holder is not willing to nominate, he/she is to
give his/her refusal in writing.
The nomination forms prescribe that thumb impression of the account
holder is required to be attested witnesses.
 RBI has clarified that signature need not be attested.
The banking company shall acknowledge in writing, to the concerned
depositor or depositors, the filing of the relevant duly completed Form of
nomination or cancellation of nomination or variation of nomination, as
the case may be, in respect of a deposit.
Status & Rights of nominee

The nominee is treated as a trustee for legal
heirs for receiving the money or articles after
death.
He is not owner. He does not acquire right of a
depositor.
Bank obligation to make payment to nominee
( no one else), except as per court order.
On payment to nominee, bank is discharged
from liability.
The Income Tax Act 1961
IDBI Bank/2020-21/166/FAD/Taxation-8 Dt: 26.06.2020

The Income Tax Act, 1961
Paradigm of TDS
Key HR Matters – Taxation Related

Outsourced Activities - Compliances
Cont….
Outsourced Activities - Compliances

Also applicable for Term Loans Segment

IDBI BANK / 2019-20/368/BOSPD/49 Oct 9,2019

Penalties
T.D.S PENALTIES FOR NOT ADHERING TO

THE REGULATIONS OF
INCOME TAX DEPARTMENT:
• Disallowance under section 40 (a) (ia) of Income Tax Act,
1961 (Act).
• Raising of demand under section 201 (1) of the Act.
• Charging of Interest under section 201 (1A) of the Act.
• Levying of penalty under section 271 C of the Act up to the
amount of tax in default.
• Levying penalty under section 221 of the Act for non
payment of demand.
PENALTIES FOR NOT ADHERING TO

T.D.S THE REGULATIONS OF
INCOME TAX DEPARTMENT:
• Prosecution under section 276 B of the Act involving
rigorous imprisonment up to 7 years with fine.
• Penalty under section 271 BB of the Act for failure to
apply for TAN or non-quoting thereof.
• Penalty under section 272 A (2) (k) of the Act for not
filing TDS Return.
• Fee under section 234 E for late filing of TDS Statement.
• Penalty under section 271 H for late filing or non filing
TDS statement.
[Cir. IDBI/03/2012-13 dated 10.05.2012]
Questions & Feedback ??
Thank You
Adhoc Banking can be more fatal as compared to
the
Blue Whale GAME

NI Act, Nomination &amp; TDS

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NI Act, Nomination &amp; TDS

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Mr. X lost a ring worth Rs.

50,000/- and a bearer

jewelers shop and purchased a new chain.

ring from jeweler shop and give it to Mr. X but,

YARDSTICKS, CHALLENGES, OPPORTUNITIES & A FEW THOUGHTS

COF MARGIN & LENDING RATE

Banks Shall continue to discharge their

Agencies involved directly or indirectly with banking

10. Income Tax Act, 1961.

23. PMLA, 2002

33. Indian Majority Act, 1875

1. Goiporia Committee Customer Service In Banks

2. Talwar Committee Customer Service Reforms

Computerization & Public

4. BASEL Committee Capital Adequacy of Banks

6. Mitra Committee Legal Aspects of Bank

8. Kalyan Sundar Committee Introduction of Factoring

10. RV Gupta Committee Agricultural Credit

14. Rashid Jilani Committee Working Group on Surveys

Due to increase in business, need was felt

Bill of exchange was used in 12th

In India, the Negotiable Instrument Act was

Section 138 to 142 were added in 1988;

Section 143 to 147 were added in 2002;

At present it has 147 sections and 17 Chapters;

NI Act is applicable through out India including

• Cash Transaction Report (CTR) – Rs. 10 lac and above.

• Multiple A/c’s under same name.

IDBI Bank’s Monitoring Aspects ??

• Insisting cash payment of chqs drawn in fvg firm, without routing

Sec 4 Promissory Note

 A negotiable instrument is one which is freely used by the

FOUR ESSENTIAL FEATURES OF NEGOTIABLE INSTRUMENT

1. The property in a negotiable instrument, i.e. the complete

VARIOUS NEGOTIABLE INSTRUMENTS

The following are not

SPECIMEN OF A DEMAND BILL:

A usance bill could be drawn in three ways: On

DEMAND PROMISSORY NOTE

CHEQUE IN NEW FORMAT

Sec Important contents relating to

Sections Important contents relating to

 Payment is in accordance with the apparent tenor of the

Sec Important contents relating to

Sections Important contents relating to

ENDORSEMENT means – Signing on the face or backside or even on a paper

16 Endorsement in blank and full and endorsee defined.

Sections Important contents relating to

FEATURES OF BILL OF EXCHANGE

RULES FOR DUE DATE CALCULATION

RULES FOR DUE DATE CALCULATION

payable on the next preceding business day

Declaration of Public Holiday : u/s 25 of N I Act

Sec. Important contents relating to

Sections Important contents relating to

84 When cheque not duly presented and drawer damaged thereby

85-2 Protection to paying banker in case of a bearer cheque

Sections Important contents relating to

125 Who can cross- drawer, holder, banker;

• General Relationship • General Relationship

Rights and responsibilities of a customer

IDBI Bank Customer Rights’ Policy 2018

– Right to Fair Treatment

Relationship as debtor and creditor.

NI Act, Nomination & TDS

NI Act, Nomination & TDS