credit instrument through which Bank deposit are Transferable
Answers
Answer:
RBI
Through Reserve Bank of India credit instrument are transferable. Hundis refer to financial instruments evolved on the Indian subcontinent used in trade and credit transaction.They were used as credit instrument(to borrow money).
Credit instrument through which bank deposits are transferable is a Cheque. It is the most commonly used instrument of credit and is as equivalent to cash. The writer of the cheque, also known as the drawer, writes the cheque on the favour of the drawee, the person who holds the cheque.
Every bank has to accept the cheque, provided it is filled correctly, and the drawer holds the minimum balance in his account for the transaction to be completed. Cheques can be of various forms bearer cheques, crossed cheques, order cheques, blank cheques and post-dated cheques. Other than cheques, the other mediums are promissory notes, bills of exchange, bank drafts, etc.