The Negotiable Instruments Act, 1881 provides for three kinds of instruments, namely, promissory notes, bills-of-exchange and cheques; it excludes from its periphery instruments in oriental language, such as, Hundies. Section 25(5) of the Payment & Settlement Systems Act, 2007 provides that, the provisions of Chapter XVII of the Negotiable Instruments Act, 1881 shall apply to cases relating to dishonour of electronic funds transfer.

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Keywords: Promissory Notes, Payment & Settlement System, FTCs, Pendency.