Multiple choice

Section 131A of the Negotiable Instruments Act extends the protection granted to a banker while

  1. receiving payment of a cheque and drafts

  2. making payment of cheque and drafts

  3. endorsing payment of cheque and drafts

  4. All of the above
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A Correct answer
Explanation

Section 131 in The Negotiable Instruments Act, 1881 Non-liability of banker receiving payment of cheque.— A banker who has in good faith and without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received such payment.

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