CLASSIFICATION OF BILLS | CAIIB NOV STUDY MATERIAL 2023
This article discusses the Classification Of Bills mainly and CAIIB Nov study material 2023.
IIBF conducts the CAIIB exam twice every year. CAIIB exam Nov 2023 consists of two mandatory papers – ABM and BFM and one elective paper, which the candidate can choose out of the six options there are – information technology, Human resource management, risk management, rural banking, retail banking, and central banking. CAIIB exam Nov 2023 will be held on 27th November, 4th December, and 10th December.
CAIIB exam Nov 2023 is believed to be one of the toughest exams to crack, but with the help of our CAIIB study material for Nov 2023, candidates can easily pass the CAIIB exam Nov 2023 with flying colors. The details of the CAIIB study material Nov 2022 are discussed later in this article. So, let us start with an important topic before we tell you how you can clear the CAIIB NOV/DEC Exam for sure.
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WHAT IS A BILL OF EXCHANGE?
A written order known as a “bill of exchange” is passed in an international transaction to obligate one party to pay a specific amount of money to the other party on demand or at a predetermined date. Similar to each other, checks and promissory notes can be drawn by banks or people and are transferable by endorsements.
An instrument in writing (that is not a banknote or currency note) that contains an unconditional promise to pay a specific amount of money solely to or at the direction of a specific person or the bearer of the instrument is referred to as a promissory note.
The Negotiable Instruments Act of 1881 defines a promissory note as “a document (not being a banknote or a currency note), embodying an unconditional assurance signed by the maker, to pay a specified sum of money solely to or to the order of a certain person, or to the bearer of the instrument.” However, a promissory note made payable to the bearer is against the Reserve Bank of India Act.
The Parties to a Promissory Note Are Two:
- Maker: The person or entity who creates or draws the promissory note and promises to pay a specific amount as stated in the note is known as the maker or drawer. Promisor is another name for Maker.
- Payee: The party on whose behalf the promissory note is drawn is the payee.
FEATURES OF BILL OF EXCHANGE
- Having a written bill of exchange is crucial.
- Not merely a request but also an order to confirm payment must be included.
- The order should be unconditional.
- The bill of exchange should have a set amount.
- Fixed date for payment of the amount
- The drawee and drawer must both sign the bill.
- It is necessary to pay the amount on the bill immediately or at the end of a certain period of time.
- The beneficiary of the bill, a specific individual, or in response to a specific order receives the payment.
Read Also: CAIIB LATEST NOVEMBER SYLLABUS 2023 | CAIIB NOTIFICATION
ADVANTAGES OF BILL OF EXCHANGE
- Legal Document: Because it is a legal document, the drawer will have an easier time recovering the money if the drawee defaults on the payment.
- Discounting Facility: The bill can be discounted from a bank by paying a few small fees in situations where the drawer needs money right away.
- Possible Endorsement: This bill of exchange may be transferred from one person to another in order to modify a debt.
WORKING ON BILL OF EXCHANGE
The bill of exchange may involve up to three parties. The party who pays the amount mentioned in the bill of exchange is known as the drawee. The payee is the person who gets the payment. On the other side, the drawer is the one who makes the drawee pay the payee. Unless the drawer transfers this bill of exchange to a different person who becomes the payee, the drawer and the payee are often the same entity.
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TYPES OF BILL OF EXCHANGE
- Documentary Bill: This sort of bill of exchange is accompanied by the pertinent documents that attest to the legality of the sale or other transaction between the seller and the buyer.
- Demand Bill: Payment for this bill is due immediately. The bill has no fixed date of payment and shall be paid as presented.
- Usance Bills have a set payment deadline, so payments must be made by that date.
- An inland bill cannot be paid outside of the nation where it was issued; it may only be paid domestically. The antithesis of this law is the foreign bill.
- Clean Bill: Because this bill lacks any supporting documentation, its interest rate is higher than that of the other bills.
- Foreign Bill: A bill classified as foreign is one that can be paid outside of India. An export bill and an import bill are two instances of a foreign bill.
- Accommodation Bill: A measure that is sponsored, designed, and accepted without any restrictions is referred to as an accommodation bill.
- Trade Bills: These bills are specifically and exclusively concerned with trade.
- Supply Bill: A supply bill is a bill that a supplier or contractor withdraws from a government department.
Now that we are done discussing the details of the Bill Of Exchange at length we would like to move on to the CAIIB study material Nov 2023.
CAIIB EXAM STUDY MATERIAL NOV 2023
Our study material offers various services which include:
- Recorded video lessons of CAIIB Subjects which candidates can easily watch on either mobile devices or their laptops / PCs and watch them offline at their convenience.
- CAIIB Live sessions are also conducted on our YouTube (the link is given in the contact section.
- CAIIB mock tests 2023 are also included in our package for you to solve and practice on.
- Memory-recalled questions are also included in our CAIIB mock tests 2022 from previous CAIIB exams.
- Short and easy notes are available in the form of epdfs which can be accessed on our mobile apps.
Read Also: CAIIB RURAL BANKING EXAM DEC 2023 | Schedule of Live Classes
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