Section $131$ of the Negotiable Instruments Act extends protection to the __________.

collecting banker

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

paying banker

No worries! We‘ve got your back. Try BYJU‘S free classes today!

advising banker

No worries! We‘ve got your back. Try BYJU‘S free classes today!

confirming banker

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A collecting banker
Under this Section, a collecting bank has protection only if the collecting bank, in good faith and without negligence, receives payment of the customer by a cheque, i.e. if there is negligence in receiving of a cheque on behalf of the customer, the collecting bank would be liable for negligence.

Suggest Corrections