Negotiable Instruments Act, 2034
Negotiable Instruments Act, 2034 was issued by NRB in order to ease banking transactions through various Negotiable instruments. The Provision of cross cheques according to chapter 8 of Negotiable instruments act, 2034 are as follows
General cross cheque: A Cheque bears across its face an addition of two parallel transverse lines
Special crossed cheque: A cheque bears across its face an addition of the name of a banker
Crossing after issue: The holder may make uncrossed cheque general or special crossed cheque or may add the word “Not Negotiable” when cheque is general or special and where a cheque is crossed specially to the banker s/he may again cross it especially to another banker.
Payment of crossed cheque: The banker on whom it is drawn shall not pay it otherwise than to a banker
Payment of cheque bearing “Account payee”: The banker shall make the payment of a crossed cheque bearing the word “Account Payee”.
Payment of cheque crossed especially more than once: Where the cheque is crossed to more than one banker, the banker shall refuse except when crossed to an agent for the purpose of collection.
Payment in due course of crossed cheque: The banker on whom a crossed cheque is drawn has paid the same in due course respectively entitled to a placed in if the amount of the cheque has been paid to and received by the true owner.
Payment of crossed cheque out due course: Any banker paying a crossed cheque without completing the procedures of the section 84 & 85 shall be liable to the owner of the cheque for his/her loss.
Cheque bearing “Not Negotiable”: A person taking a cheque crossed bearing “Not Negotiable” shall not be capable of giving a better title to the cheque.
Non-Liability of banker receiving payment of cheque: In the case the cheque proves to be defective incur any liabilities a banker shall not received such payment.
Application of this chapter to drafts: The provision of this chapter shall apply to any draft as if the draft were a cheque.
Remittance
In general, remittance refers to the transferring of money from one country to another country by one party on another party. Usually, senders of the money are immigrants’ workers who send their hard earned to money their family who resides in another country.
Advantages of Remittance
Remittance helps to enhance the standard living of the families who received the remittance.
Increased standard living increases the consumption as well which resulted in increasing the national income.
Remittance facilitates human capital particularly increasing education of children.
Remittance reduces existing poverty and income inequality by raising the average level of income.
Positive impact on financial development in rural areas due to increasing use of financial intuition to get remittance.
Disadvantages of Remittance
Big inflow of remittance can lead to price appreciation causing exports price go up and import price to be cheaper.
It encourages more migrant to move in developed countries which results shortage of labor in the market.
It might encourages terrorism financing because anyone can sent money and withdraw it.
It increases a country’s dependencies on remittance rather than investment.
Dependence on remittance cause neglect of local productive activities by the families who received remittance.
Sudden inflow of money could cause inflation in the country.
In developing countries like Nepal, remittance plays an important role in its development of the economy but it is clear that it could have damaged economy as well if a country depends on it too much. With proper guidance and regulation such disadvantages can be controlled.
