JAIIB | ACCOUNTING AND FINANCIAL MANAGEMENT (AFM) | CASE STUDY ON BILLS OF EXCHANGE

The Junior Associate of the Indian Institute of Bankers (JAIIB) certification prepares banking professionals with the knowledge needed to succeed in their roles. A vital topic within the Accounting and Financial Management (AFM) module is the Bills of Exchange, a primary instrument in modern financial and commercial transactions. Learning Sessions will take you through this article exploring the concept, relevance, and practical application of bills of exchange in banking, supported by a real-world case study to help JAIIB applicants grasp its importance.

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A bill of exchange is a written, unconditional order issued by one party (the drawer) to another (the drawee) to pay a specified sum to a third party (the payee) on demand or at a predetermined date.

For the extensive preparation of candidates, get details through our YouTube videos for JAIIB AFM Module wise Syllabus with explanations and tips to help candidates in their preparation journey.

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Key features include:

1. Legality: Governed by the Negotiable Instruments Act, 1881 in India.
2. Parties Involved: Drawer, drawee, and payee.
3. Payment Terms: Can be payable on demand or at a future date.
4. Negotiability: Can be transferred to another party by endorsement.

Bills of exchange are widely used in trade, ensuring smooth financial transactions and credit arrangements.

Types of Bills of Exchange

1. Trade Bills: Arising from commercial transactions, such as the sale of goods.
2. Accommodation Bills: Used to provide financial assistance without any trade transaction.
3. Demand Bills: Payable on demand.
4. Usance Bills: Payable after a specified period.

Taking everything into account, The bills of exchange topic in the JAIIB AFM module offers pivotal insights into trade finance and credit management. For banking professionals, considering this instrument increases their ability to facilitate transactions, manage liquidity, and support businesses effectively. Let the knowledge of bills of exchange strengthen your understanding of the financial system. Learning Sessions provides additional information about JAIIB AFM EQUITY RATIO by giving examples of real life scenarios.

Learn more about this case study through our YouTube channel and PDF.

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