In a joint account if one of the signatures is forged the bank and the customer are equally liable.

What is the LC Issuing Bank also called?

Payment to be made in due course need not always be made to the holder but can be made to his agent or servant.

The responsibility of a bank to pay back the money of the customer is specifically stated in the Negotiable Instruments Act, 1881.

For which of the functions of the bank are KYC norms applicable?

It is necessary for a bank to make inquiries regarding the reference given by the customer.

In the absence of a proper reference, a bank can be held liable on the grounds of negligence.

As per section 131-A of the Negotiable Instruments Act, the protection granted to a bank while paying cheque has been made applicable to drafts also.

Insurance contracts are not contracts of indemnity.

An indemnity contract is

What document is obtained from a customer who has lost a demand draft purchased by him, before issuing a duplicate?

The Counter guarantee is given by the beneficiary.

The validity period and the claim period of a bank guarantee fall on the same date.

On discounting a bill, does the bank become lawful holder of the bill?

The maker of the bill is called drawee.

The drawer of the bill is bound in case of dishonour of bill.

In a deferred payment guarantee, the guarantee is to ensure delivery of goods.

At whose request, is the letter of credit opened?

Letters of credit are not negotiable instruments.