Tag: Definition

Definition!

What is a Definition? It is a statement of the meaning of a term (a word, phrase, or other set of symbols). As well as, Descriptions can classify into two large categories, intentional purposes (which try to give the essence of a term) and extensional purposes (which proceed by listing the objects that a term describes).

Another important category of definitions is the class of ostensive illustrations, which convey the meaning of a term by pointing out examples. Also, A term may have many different senses and multiple meanings and thus require multiple reports.

A statement of the meaning of a word or word group or a sign or symbol dictionary definitions. The statement expresses the essential nature of something, a product of defining.
The action or process of stating the meaning of a word or word group.

Negotiable Instruments: Definition, Characteristics, and Features!
A Negotiable Instrument is a document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer usually named on the document. The Concept of the study Explains – Negotiable Instruments: Meaning, Definition of Negotiable Instruments, Characteristics of Negotiable Instruments, and Features of Negotiable Instruments. More specifically, it is a document contemplated by or consisting of a contract, which promises the payment of money without condition, which may be paid either on demand or at a future date. The term can have different meanings, depending on what law is being applied and what country and context it is used in. Also learned, Commercial Bills, Negotiable Instruments: Definition, Characteristics, and Features! Read and share the given article in Hindi.

Explain and Learn, Negotiable Instruments: Definition, Characteristics, and Features!

Negotiable Instruments Act: The law relating to “Negotiable Instruments” is contained in the Negotiable Instruments Act, 1881, as amended up-to-date. It deals with three kinds of negotiable instruments, i.e., Promissory Notes, Bills of Exchange and Cherubs. The provisions of the Act also apply to “hands” (an instrument in oriental language), unless there is a local usage to the contrary.

Other documents like treasury bills, dividend warrants, share warrants, bearer debentures, port trust or improvement trust debentures, railway bonds payable to bearer etc., are also recognized as negotiable instruments either by mercantile custom or under other enactments like the Companies Act, and therefore, Negotiable Instruments Act is applicable to them.

#Definition of Negotiable Instruments:

The word “Negotiable” means “Transferable by delivery”, and the word “Instrument” means “A written document by which a right is created in favor of some person”. Thus, the term “Negotiable instrument” literally means “a written document transferable by delivery”.

According to Section 13 of the Negotiable Instruments Act,

“A negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer.”

The Act, thus, mentions three kinds of negotiable instruments, namely notes, bills and cherubs and declares that to be negotiable they must be made payable in any of the following forms:

A) Payable to order:

A note, bill or cheque is payable to order which is expressed to be “payable to a particular person or his order”.

But it should not contain any words prohibiting the transfer, e.g., “Pay to A only” or “Pay to A and none else” is not treated as “payable to order” and therefore such a document shall not be treated as the negotiable instrument because its negotiability has been restricted.

There is, however, an exception in favor of a cherub. A cheque crossed “Account Payee only” can still be negotiated further; of course, the banker is to take extra care in that case.

B) Payable to bearer:

“Payable to bearer” means “payable to any person whom so ever bears it.” A note, bill or cheque is payable to bearer which is expressed to be so payable or on which the only or last endorsement is an endorsement in blank.

The definition given in Section 13 of the Negotiable Instruments Act does not set out the essential characteristics of a negotiable instrument. Possibly the most expressive and all-encompassing definition of negotiable instrument had been suggested by Thomas who is as follows:

“A negotiable instrument is one which is, by a legally recognized custom of trade or by law, transferable by delivery or by endorsement and delivery in such circumstances that (a) the holder of it for the time being may sue on it in his own name and (b) the property in it passes, free from equities, to a bonfire transferee for value, notwithstanding any defect in the title of the transferor.”

#Characteristics of Negotiable Instruments:

An examination of the above definition reveals the following essential characteristics of negotiable instruments which make them different from an ordinary chattel:

Easy negotiability:

They are transferable from one person to another without any formality. In other words, the property (right of ownership) in these instruments passes by either endorsement or delivery (in case it is payable to order) or by delivery merely (in case it is payable to bearer), and no further evidence of transfer is needed.

The transferee can sue in his own name without giving notice to the debtor:

A bill, note or a cheque represents a debt, i.e., an “actionable claim” and implies the right of the creditor to recover something from his debtor. The creditor can either recover this amount himself or can transfer his right to another person. In case he transfers his right, the transferee of a negotiable instrument is entitled to sue on the instrument in his own name in case of dishonor, without giving notice to the debtor of the fact that he has become the holder.

The better title to a bonfire transferee for value:

A bonfire transferee off a negotiable instrument for value (technically called a holder in due course) gets the instrument “free from all defects.” He is not affected by any defect of title of the transferor or any prior party. Thus, the general rule of the law of transfer applicable in the case of ordinary chattels that “nobody can transfer a better title than that of his own” does not apply to negotiable instruments.

Examples of Negotiable Instruments:

The following instruments have been recognized as negotiable instruments by statute or by usage or custom:
- Bills of exchange;
- Promissory notes;
- Cheques;
- Government promissory notes;
- Treasury bills;
- Dividend warrants;
- Share warrants;
- Bearer debentures;
- Port Trust or Improvement Trust debentures;
- Hindus, and;
- Railway bonds payable to bearer, etc.
Examples of Non-negotiable Instruments:

These are:
- Money orders;
- Postal orders;
- Fixed deposit receipts;
- Share certificates, and;
- Letters of credit.
Endorsement:

Section 15 defines endorsement as follows: “When the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation, on the back or face thereof or on a slip of paper annexed thereto, or so signs for the same purpose a stamped paper intended to be completed as negotiable instrument, he is said to endorse the same, and is called the endorser.”

Thus, an endorsement consists of the signature of the holder usually made on the back of the negotiable instrument with the object of transferring the instrument. If no space is left on the back of the instrument for the purpose of endorsement, further endorsements are signed on a slip of paper attached to the instrument. Such a slip is called “along” and becomes part of the instrument. The person making the endorsement is called an “endorser” and the person to whom the instrument is endorsed is called an “endorse.”

Kinds of Endorsements:

Endorsements may be of the following kinds:
1. Blank or general endorsement: If the endorser signs his name only and does not specify the name of the indorse, the endorsement is said to be in blank. The effect of a blank endorsement is to convert the order instrument into a bearer instrument which may be transferred merely by delivery.
2. Endorsement in full or special endorsement: If the endorser, in addition to his signature, also adds a direction to pay the amount mentioned in the instrument to, or to the order of, a specified person, the endorsement is said to be in full.
3. Partial endorsement: Section 56 provides that a negotiable instrument cannot be endorsed for a part of the amount appearing to be due on the instrument. In other words, a partial endorsement which transfers the right to receive only a partial payment of the amount due on the instrument is invalid.
4. Restrictive endorsement: An endorsement which, by express words, prohibits the indorse from further negotiating the instrument or restricts the indorse to deal with the instrument as directed by the endorser is called “restrictive” endorsement. The indorse under a restrictive endorsement gets all the rights of an endorser except the right of further negotiation.
5. Conditional endorsement: If the endorser of a negotiable instrument, by express words in the endorsement, makes his liability, dependent on the happening of a specified event, although such event may never happen, such endorsement is called a “conditional” endorsement.
In the case of a conditional endorsement, the liability of the endorser would arise only upon the happening of the event specified. But they endorse can sue other prior parties, e.g., the maker, acceptor etc. if the instrument is not duly met at maturity, even though the specified event did not happen.

Negotiable Instruments: Definition, Characteristics, and Features!

#Features of Negotiable Instruments:

Negotiable Instrument, in law, a written contract or another instrument whose benefit can be passed on from the original holder to new holders. The original holder (the transferor) must countersign the instrument (as in the case of a cheque) or merely deliver it (as in the case of a bank note) to the new holder; the new holder is then entitled to the benefit of the instrument (in the case of a cheque, to the money from the bank; in the case of the banknote, to the sum promised on the note).

According to section 13 of the Negotiable Instruments Act, 1881, a negotiable instrument means,

“Promissory note, bill of exchange, or cheque, payable either to order or to bearer.”

Major features of negotiable instruments are:

The following features below are:

Easy Transferability:

A negotiable instrument is freely transferable. Usually, when we transfer any property to somebody, we are required to make a transfer deed, get it registered, pay stamp duty, etc. But, such formalities are not required while transferring a negotiable instrument.

The ownership is changed by mere delivery (when payable to the bearer) or by valid endorsement and delivery (when payable to order). Further, while transferring it is also not required to give notice to the previous holder.

Title:

Negotiability confers an absolute and good title on the transferee. It means that a person who receives a negotiable instrument has a clear and indisputable title to the instrument.

However, the title of the receiver will be absolute, only if he has got the instrument in good faith and for consideration.

Also, the receiver should have no knowledge of the previous holder having any defect in his title. Such a person is known as the holder in due course.

Must be in writing:

A negotiable instrument must be in writing. This includes handwriting, typing, computer print out and engraving, etc.

Unconditional Order:

In every negotiable instrument, there must be an unconditional order or promise for payment.

Payment:

The instrument must involve the payment of a certain sum of money only and nothing else.

For example, one cannot make a promissory note on assets, securities, or goods.

The time of payment must be certain:

It means that the instrument must be payable at a time which is certain to arrive. If the time is mentioned as “when convenient” it is not a negotiable instrument.

However, if the time of payment is linked to the death of a person, it is nevertheless a negotiable instrument as death is certain, though the time thereof is not.

The payee must be a certain person:

It means that the person in whose favor the instrument is made must be named or described with reasonable certainty.

The term “person” includes individual, body corporate, trade unions, even secretary, director or chairman of an institution. The payee can also be more than one person.

Signature:

A negotiable instrument must bear the signature of its maker. Without the signature of the drawer or the maker, the instrument shall not be a valid one.

Delivery:

Delivery of the instrument is essential. Any negotiable instrument like a cheque or a promissory note is not complete until it is delivered to its payee.

For example, you may issue a cheque in your brother”s name but it is not a negotiable instrument until it is given to your brother.

Stamping:

Stamping of Bills of Exchange and Promissory Notes is mandatory. This is required as per the Indian Stamp Act, 1899. The value of stamp depends upon the value of the pro-note or bill and the time of their payment.

Right to file suit:

The transferee of a negotiable instrument is entitled to file a suit in his own name for enforcing any right or claim on the basis of the instrument.

Notice of transfer:

It is not necessary to give notice of transfer of a negotiable instrument to the party liable to pay.

Presumptions:

Certain presumptions apply to all negotiable instruments, for example, consideration is presumed to have passed between the transferor and the transferee.

Procedure for suits:

In India, a special procedure is provided for suits on promissory notes and bills of exchange.

The number of transfer:

These instruments can be transferred indefinitely until they are at maturity.

Rule of evidence:

These instruments are in writing and signed by the parties, they are used as evidence of the fact of indebtedness because they have special rules of evidence.

Exchange:

These instruments relate to payment of certain money in legal tender, they are considered as substitutes for money and are accepted in exchange of goods because cash can be obtained at any moment by paying a small commission. Read and share the given article (Negotiable Instruments: Definition, Characteristics, and Features) in Hindi.
June 20, 2018
Cheque: Meaning, Definition, Types, and Features
The cheque is an important negotiable instrument that can transfer by mere hand delivery. The Concept of the study Explains – Cheque Meaning, Definition, What is Checking Accounts? Types, The Different Kinds of Cheque, and Features. The cheque uses to make a safe and convenient payment. It is less risky and the danger of loss minimizes. Also Learn, Bill of Exchange.

Explain and Learn, Cheque: Meaning, Definition, Types, and Features.

A cheque is a very common form of the negotiable instrument. If you have a savings bank account or current account in a bank, you can issue a cheque in your name or favor of others, thereby directing the bank to pay the specified amount to the person named in the cheque.

Therefore, a cheque may regard as a bill of exchange; the only difference is that the bank is always the drawee in case of a cheque. The Negotiable Instruments Act, 1881 defines a cheque as a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.

From the above dentition, it appears that a cheque is an instrument in writing, containing an unconditional order, signed by the maker, directing a specified banker to pay, on-demand, a certain sum of money only to, to the order of, a certain person or to the bearer of the instrument.

The person who draws a cheque calls the “drawer”. The banker on whom it draws is the “drawee” and the person in whose favor it draws is the “payee”. A cheque is an order by the account holder of the bank directing his banker to pay on demand, the specified amount, to or to the order of the person named therein or to the bearer.

Definition of a Cheque:

The definition below is;

“Cheque is an instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of the certain person or to the bearer of the instrument.”

What is Checking Accounts?

To open a checking account, a person deposits a sum of money in a bank. The bank gives him a checkbook with blank check forms and provides him with a means of keeping a record of the checks he writes and the amount of money he still has on deposit. The bank gives him a receipt for each new deposit and sends him a statement (usually monthly) showing a complete record of all transactions.

All concealed checks (checks that have been cashed by the bank) are returned with the statement, providing the depositor with proof that payment was received. The bank usually makes a small service charge on every account, and perhaps also a charge for each check written. Ordinarily, no interest pays on checking accounts.

More Things…

To make out a check, the depositor writes the date, the name of the payee (the person or firm who is to receive the money), and the amount. He then signs his name. Before cashing the check the payee must endorse it by signing his name on the back. He then either deposits it in a bank or exchanges it for cash by giving the check to a bank, currency exchange, business firm, or individual. The new owner can endorse the check to someone else or can deposit it in a bank.

When a check reaches a bank, it is forwarded through a clearing-house back to the bank on which it was drawn. After making sure the depositor’s signature is genuine, this bank, in turn, pays the cashing bank through the clearinghouse. The biggest danger in accepting a check is that the person writing it may not have enough money (or any money) in the bank to cover it. Forgery is another danger. The best defense against “bad checks” is to refuse to accept checks from strangers.

Types of Cheque:

Cheques are of four types.

Open cheque:

A cheque is called “Open” when it is possible to get cash over the counter at the bank. The holder of an open cheque can do the following:
- Receive its payment over the counter at the bank.
- Deposit the cheque in his account.
- Pass it to someone else by signing on the back of a cheque.
Crossed cheque:

Since open cheque is subject to the risk of theft, it is dangerous to issue such cheques. This risk can avoid by issuing other types of cheque called “Crossed cheque”. The payment of such cheque does not make over the counter at the bank. It is only credited to the bank account of the payee. A cheque can cross by drawing two transverse parallel lines across the cheque, with or without the writing “Account payee” or “Not Negotiable”.

Bearer cheque:

A cheque which is payable to any person who presents it for payment at the bank counter calls ‘Bearer cheque’. A bearer cheque can be transferred by mere delivery and requires no endorsement.

Order cheque:

An order cheque is one that is payable to a particular person. In such a cheque the word ‘bearer’ may cut out or cancel and the word ‘order’ may write. The payee can transfer an order cheque to someone else by signing his or her name on the back of it.

There is another categorization of cheques which discusses below:
1. Ante-dated cheques: Cheque in which the drawer mentions the date earlier to the date of presenting if for payment. For example, a cheque issued on 24th March 2011 may bear a date 4th March 2011.
2. Stale Cheque: A cheque that issues today must be presented before at the bank for payment within a stipulated period. After expiry of that period, no payment will make and it then calls ‘stale cheque’
3. Mutilated Cheque: In case a cheque is torn into two or more pieces and presented for payment, such a cheque calls a mutilated cheque. The bank will not make payment against such a cheque without getting confirmation of the drawer. But if a cheque is torn at the corners and no material fact is erased or canceled, the bank may make payment against such a cheque.
4. Post-dated Cheque: Cheque on which drawer mentions a date which is after the date on which it is presented, is called post-dated cheque. For example, if a cheque presented on 8th May 2003 bears a date of 27th March 2011, it is a post-dated cheque. The bank will make payment only on or after 27th March 2011.
Different Kinds of Cheques:

They are below;

Bearer Cheque:

When the words “or bearer” appearing on the face of the cheque are not canceled, the cheque is called a bearer cheque. The bearer cheque is payable to the person specified therein or to any other else who presents it to the bank for payment. However, such cheques are risky, this is because if such cheques are lost, the finder of the cheque can collect payment from the bank.

Order Cheque:

When the word “bearer” appearing on the face of a cheque is canceled and when in its place the word “or order” is written on the face of the cheque, the cheque is called an order cheque. Such a cheque is payable to the person specified therein as the payee, or to anyone else to whom it is endorsed (transferred).

Uncrossed / Open Cheque:

When a cheque is not crossed, it is known as an “Open Cheque” or an “Uncrossed Cheque”. The payment of such a cheque can be obtained at the counter of the bank. An open cheque may be a bearer cheque or an order one.

Crossed Cheque:

The crossing of cheque means drawing two parallel lines on the face of the cheque with or without additional words like “& CO.” or “Account Payee” or “Not Negotiable”. A crossed cheque cannot be encashed at the cash counter of a bank but it can only be credited to the payee’s account.

Anti-Dated Cheque:

If a cheque bears a date earlier than the date on which it is presented to the bank, it is called as “anti-dated cheque”. Such a cheque is valid for up to three months from the date of the cheque.

Post-Dated Cheque:

If a cheque bears a date that is yet to come (future date) then it is known as the post-dated cheque. A post-dated cheque cannot be honored earlier than the date on the cheque.

Stale Cheque:

If a cheque is presented for payment after three months from the date of the cheque it is called stale cheque. A stale cheque is not honored by the bank.

Features of a Cheque:

The cheque is one of the important negotiable instruments. It is frequently used by the people and the business community in the course of their personal and business transactions. The definition of the cheque has been given in Section 6 of Negotiable Instrument Act in these words, “A cheque is a bill of exchange drawn on a specified banker and is expressed to the payable, otherwise than on demand.”

The essential requisites of the cheque areas;

Must be in Writing:

The cheque may be written in hand by using ink or ballpoint pen, typed or even it may be printed. But the customer should not use the pencil to fill up the cheque form. Even though other columns may be permitted to be written in hand or printed or typed, the signatures should be made by ink pen or ballpoint pen by the maker.

Must be Unconditional:

The order to pay the amount must be unconditional. If there is any condition imposed to pay the amount to the holder of the cheque then it will not be considered as a cheque. A cheque made payable on the happening of a contingent event is void ab-initio.

Must be Drawn on a Specified Banker:

For the validity of a Cheque, it must draw on a specified banker. If there is not mentioned in the cheque about the banker it would not be a valid cheque. In addition to it, it must contain all the three parties i.e. Drawer, Drawee, and Payee.

Certain Sum of Money:

It is one of the essential requirements of the Cheque that it must be payable in money and money only. It is not in terms of the money then it will be a valid one. The sum mentioned in it must be certain.

Certain Payee:

The parties of the Cheque must be certain. There are three parties to the cheque i.e. Drawer, Drawer, and Payee. In a valid Cheque the name of the must contain in other words they must be certain. It must contain an order, which must be unconditional. If any condition were imposed then it would not be a valid cheque.

Date:

In a valid cheque, it must signs by the drawer with date otherwise it would not be a valid cheque. It must write in hand by using ink or ballpoint pen, typed or even it may print as it becomes conclusive proof i.e. presumption under Section 118(b) unless the contrary proves.

Parties to the Cheque:

The maker of a cheque calls the ‘Drawer’, the person thereby directed to pay calls ‘Drawee’ and the person named in the instruments, to whom or to whose order the money is by the instrument directly to pays, and calls the “Payee.”

The person entitled in his name to the possession of the cheque and to receive or recover the amount due to calls the “Holder of the cheque.”

The person who for consideration becomes the possessor of the cheque is payable to bearer, or the payee or endorsee thereof, if payable to order, before the amount mentioned in it became payable and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title is called the “Holder in due course.”

The maker or the holder of the cheque signs his name (endorse) on the back of the cheque for negotiable and he says to be the ‘Endorser.’ The endorser who signs his name and directs to pay the amount mentioned in the cheque to, or the order of, a specified person, and the person so specified calls the “Endorsee” of the cheque.
June 20, 2018
Promissory Note: Definition, Types, and Features!
Explain and Learn, Promissory Note: Definition, Types, and Features!

A promissory note is a written contract that requires a borrower to pay back a lender an amount of money on a future date. The Concept of the study Explains – Promissory Note: Definition of Promissory Note, Types of Promissory Note, and Features of Promissory Note, Ten-Points, Ten-Key! A promissory note, sometimes referred to as a note payable, is a legal instrument, in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms. Also learned, Commercial Bills, Promissory Note: Definition, Types, and Features!

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What is the definition of promissory note? Promissory notes usually refer to the borrower as the maker of the note. The borrower generally is said to have made the written agreement because he or she is initiating the transaction. The lender is referred to as the payee because it is the party that first pays the money to the borrower and then receives the payments at a future date. I know this is confusing. Just remember the maker is the borrower and the payee is the lender.

Businesses use notes to finance many different operations. Some companies use short-term notes to finance inventory purchases while other businesses use long-term notes to raise enough capital to purchase large equipment and machinery. Really this note is just a fancy way of saying a loan.

Promissory Note, in the law of negotiable instruments, the written instrument containing an unconditional promise by a party, called the maker, who signs the instrument, to pay to another, called the payee, a definite sum of money either on demand or at a specified or ascertainable future date. The note may be made payable to the bearer, to a party named in the note, or to the order of the party named in the note.

A promissory note differs from an IOU(An IOU (abbreviated from the phrase “I owe you“) is usually an informal document acknowledging debt) in that the former is a promise to pay and the latter is a mere acknowledgment of a debt. A promissory note is negotiable by endorsement if it is specifically made payable to the order of a person.

Definition:

A promissory note is a written agreement to pay a specific amount to specific party at a future date or on demand. In other words, it’s a written loan agreement between two parties that requires the borrower to pay the lender on a day in the future. This could be a set date or a date chosen by the lender.

According to section 4 of the Negotiable Instruments Act, 1881, a promissory note means “Promissory Note is an instrument in writing (not being a bank-note or a currency-note) containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument.”

A promissory note is a written and signed contract in which one party promises to pay a specified amount of money to the other party. The terms of a promissory can be tailored to the parties’ needs, as far as the amount borrowed, whether interest will be charged, the schedule or date by which the money must be repaid, and any other needed particulars.

There is no requirement that a promissory note is made on a certain type of paper or document, or that it contains complex language, though it is important to be as specific as possible. In fact, a promissory written and signed on a scrap piece of paper, back of a napkin, or even in an email or text message, is just as valid as a note drawn up by a lawyer.

Types of Promissory Note:

Though every good promissory note contains certain elements, there are several types of promissory note. These notes are largely classified by the type of loan issued or purpose for the loan. All of the following types of the promissory note are legally binding contracts.
1. Personal Promissory Note: This type is used to record a personal loan made between two parties. While not all lenders use legal writings when dealing with friends and family, it helps avoid confusion and hurt feelings later. A personal promissory note shows good faith on behalf of the borrower, and provides the lender with recourse should the borrower fail to pay back the loan.
2. Commercial Promissory Note: A commercial promissory note is typically required with commercial lenders. Commercial promissory notes are often more strict than personal notes. If the borrower defaults on its loan, the commercial lender is entitled to immediate payment of the full balance, not just the past due amount. In most cases, the lender on a commercial promissory note can place a lien on the borrower’s property until payment in full is received.
3. Real Estate Promissory Note: A real estate promissory note is similar to a commercial note, as it often stipulates that a lien can be placed on the borrower’s home or other property if he defaults. If the borrower does default on a real estate loan, the information can become public record.
4. Investment Promissory Note: An investment promissory note is often used in a business transaction. Investment promissory notes are exchanged to raise capital for the business, and they often contain clauses that deal with returns on investments for specific periods of time.
Features of a Promissory Note:
1. The promissory note must be in writing- Mere verbal promises or oral undertaking does not constitute a promissory note. The intention of the maker of the note should be signified by writing in clear words on the instrument itself that he undertakes to pay a particular sum of money to the payee or order or to the bearer
2. It must contain an express promise or clear undertaking to pay- The promise to pay must be expressed. It cannot be implied or inferred. A mere acknowledgment of indebtedness is not enough.
3. The promise to pay must be definite and unconditional- The promise to pay contained in the note must be unconditional. If the promise to pay is coupled with a condition, it is not a promissory note.
4. The maker of the pro-note must be certain- The instrument should show on the fact of it as to who exactly is liable to pay. The name of the maker should be written clearly and ascertainable on seeing the document.
5. It should be signed by the maker- Unless the maker signs the instrument, it is incomplete and of no legal effect. Therefore, the person who promises to pay must sign the instrument even though it might have been written by the promisor himself.
6. The amount must be certain- The amount undertaken to be paid must be definite or certain or not vague. That is, it must not be capable of contingent additions or subtractions.
7. The promise should be to pay money- The promissory note should contain a promise to pay money and money only, i.e., legal tender money. The promise cannot be extended to payments in the form of goods, shares, bonds, foreign exchange, etc.
8. The payee must be certain- The money must be payable to a definite person or according to his order. The payee must be ascertained by name or by designation. But it cannot be made payable either to bearer or to the maker himself.
9. It should bear the required stamping- The promissory note should, necessarily, bear sufficient stamp as required by the Indian Stamp Act, 1889.
10. It should be dated- The date of a promissory note is not material unless the amount is made payable at the particular time after date. Even then, the absence of date does not invalidate the pro-note and the date of execution can be independently proved. However to calculate the interest or fixing the date of maturity or lm\imitation period the date is essential. It may be ante-dated or post-dated. If post-dated, it cannot be sued upon till ostensible date.
11. Demand- The promissory note may be payable on demand or after a certain definite period of time.
12. The rate of interest- It is unusual to mention in it the rated interest per annum. When the instrument itself specifies the rate of interest payable on the amount mentioned it, interest must be paid at the rate from the date of the instrument.
June 19, 2018
Bill of Exchange: Content, Parties, and Advantages!
Explain and Learn, Bill of Exchange: Content, Parties, and Advantages!

The Concept of the study Explains – Bill of Exchange: Content of Bill of Exchange, Parties of Bill of Exchange, and Advantages of Bill of Exchange! Definition of Bill of Exchange: Bill of Exchange, can be understood as a written negotiable instrument, that carries an unconditional order to pay a specified sum of money to a designated person or the holder of the instrument, as directed in the instrument by the maker. The bill of exchange is either payable on demand, or after a specified term. Also learned, Bill of Exchange: Content, Parties, and Advantages!

In a business transaction, when the goods are sold on credit to the buyer, the seller can make the bill and send it to the buyer for acceptance, which contains the details such as name and address of the seller and buyer, amount of bill, maturity date, signature, and so forth.

Features of Bill of Exchange:
- An instrument which a creditor draws upon his debtor.
- It carries an absolute order to pay a specified sum.
- The sum is payable to the person whose name is mentioned in the bill or to any other person, or the order of the drawer, or to the bearer of the instrument.
- It requires to be stamped, duly signed by the maker and accepted by the drawee.
- It contains the date by which the sum should be paid to the creditor.
For Example:

Sam gives a loan of Rs.1,00,000 to Alex, which Alex has to return after three months. Further, Joseph has bought certain goods from Peter, on credit for Rs. 1,00,000. Now, Joseph can create a document directing Alex, to pay Rs. 1,00,000 to Peter, after three months. The instrument will be called as Bill of Exchange, which is transferred to Peter, on whom the payment is due, for the goods purchased from him.

Parties to a Bill of Exchange:

There are three parties viz. ‘Drawer’, ‘Drawee’ and ‘Payee’ to a bill of exchange.
1. Drawer: A bill of exchange is drawn upon the buyer/debtor by the seller/creditor and the drawer is the person who makes and draws the bill. The drawer is entitled to receive money from the debtor.
2. Drawee: The person upon whom the bill of exchange is drawn is known as drawee. Bill of exchange is drawn on the drawee who is the purchaser of goods. The Drawee of a bill is called the acceptor when he writes the words “accepted” and puts his signatures on it. This process is known as acceptance. After acceptance, the bill of exchange becomes a legal document. This document now binds the drawee to honor the bill on the due date. This acceptance may be general or qualified. In the case of general acceptance, without stating any conditions, the only sign of the acceptor is required. However, in the case of qualified acceptance, the name of the bank or specified place for payment is mentioned.
3. Payee: The person to whom the payment is made is known as payee. In some cases, the drawer of the bill also becomes the payee when he himself keeps the bill till the date of maturity. Drawer and Payee is usually the same person.
However, in the following cases drawer and payee are two different persons:

(i) When the bill is discounted by the drawer, the person who discounted the bill becomes the payee.

(ii) When the bill is endorsed to a creditor, the endorsee will become the payee.

The content of Bills of Exchange:

The contents of bills of exchange are as under:
- Date: The date of the bill on which it is drawn should be written on the top right comer of the bill. This aspect is very important to determine the maturity date of the bill.
- Term: This is the tenure of the bill and runs from the date of the bill. This should be specified in the body of the bill. The grace period of three days should be given after the expiry of the term from the date of the bill.
- Amount: Amount of the bill should be given both in figures and words. The amount in figures should be mentioned on the top left corner of the bill and amount in words should be mentioned in the body of the bill.
- Stamp: Stamp of proper value which depends on the amount of bill shall be affixed on the bills of exchange.
- Parties: There may be three parties to the bills of exchange, drawer, drawee, and payee. However, in some cases, drawer and payee may be the same person. All the names of the parties and their addresses should also be invariably mentioned in the bills of exchange.
- For Value Received: This aspect is most important in the sense that law does not consider those agreements which have been made without consideration. Consideration means in lieu of and in the context of bills of exchange, it means that the bill has been issued in exchange of some consideration i.e., benefit has already been received.
Advantages of Bills of Exchange:

The bills of exchange are used frequently in business as an instrument of credit due to the following reasons:
- Legal Relationship: Issuing bills of exchange provides a framework which converts and establishes a legal relationship between seller and buyer, from creditor and debtor to drawer and drawee. In the case of any dispute between the parties, this relationship provides a conclusive proof in the court of law.
- Terms and Conditions: Bill of exchange contains all terms and conditions of payments viz., amount of the bill, date of payment, place of payment, interest to be paid if any. The maturity date of the bill is also known to the parties to the bill so they can make necessary arrangement for funds.
- Mode of Credit: Bill of exchange has been defined as a negotiable instrument under the Negotiable Instruments Act, 1881. The buyer can buy the goods on credit and pay after the period of credit with the help of bill of exchange. In case of urgency, the drawer can also get the payment by discounting the bill from the bank and without waiting for the maturity period.
- Easy Transferability: Bill of exchange can be used for settling the debt of the creditors. Mere delivery and endorsement of the bill give a valid title to the endorsee.
- Wider Acceptance: In case of the foreign bill, wider acceptance is given to the parties through which payments can be received and made easily.
- Mutual Accommodation: Sometimes, the bill can be issued for mutually accommodating the parties so that financial help can be given to each other.
June 19, 2018
Bill of Exchange: Meaning, Definition, and Features!
Explain and Learn, Bill of Exchange: Meaning, Definition, and Features!

A bill of exchange is generally drawn by the creditor on his debtor. The Concept of the study Explains – Bill of Exchange: What is a Bill of Exchange? Meaning of Bill of Exchange, Definition of Bill of Exchange, and Features of Bill of Exchange! It should be accepted either by the debtor or any person(s) on his/her behalf. It is worth mentioning that before its acceptance by the debtor, it is just a draft. It should be accepted either by a person upon whom it is drawn or someone else on his/her behalf. The stage at which the purchaser of goods signs the draft and writes ‘Accepted’ on it, it becomes a bill of exchange. Also learned, Bill of Exchange: Meaning, Definition, and Features!

What is a Bill of Exchange?

According to section 5 of the Negotiable Instruments Act, 1881, defines Bill Of Exchange as “A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.”

A promise or order to pay is not “conditional”, within the meaning of this section and section 4, by reason of the time for payment of the amount or any installment thereof being expressed to be on the lapse of certain period after the occurrence of a specified event which, according to the ordinary expectation of mankind, is certain to happen, although the time of its happening may be uncertain.

The sum payable may be “certain”, within the meaning of this section and section and section 4, although it includes future indicated rater of change, or is according to the course of exchange, or is according to the course of exchange, and although the instrument provides that, on default of payment of an installment, the balance unpaid shall become due.

The person to whom it is clear that the direction is given or that payment is to be made may be a “certain person,” within the meaning of this section and section 4, although he is misnamed or designated by description only.

Meaning of Bill of Exchange:

T.P Mukherjee law Dictionary with pronunciation defines Bill of Exchange as under: “A bill of exchange is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay, on demand or at a fixed or determinable future time, a sum certain in money to or the order of a specified person or to bearer.”

The legal and commercial dictionary defines Bill of Exchange as under: “Bill of Exchange includes a hundi and a cheque. A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of certain. The person or to the bearer of the instrument.”

Black‘s Law Dictionary defines Bill of Exchange as under: “Bill of Exchange. A three-party instrument in which the first party draws an order for the payment of a sum certain on the second party for payment to a third party at a definite future time.”

Wharton ‘s law lexicon Dictionary defines Bill of exchange as under: “As an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer.”

K.J. Aiyers judicial Dictionary defines Bill of Exchange as under: “It is a written order or request by one person to another for the payment of money at a specified time absolutely and at all events. A bill of exchange is only a transfer of a chose in action according to the custom of merchants, it is an authority to one person to pay to another the sum which is due to the first.”

P.G. Osborn’s. The concise commercial Dictionary defines Bill of Exchange as under: “An unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time, a sum certain in money, to or to the order of, a specified person, or to bearer. A bill of exchange is a negotiable instrument.”

Mitra’s legal and commercial Dictionary defines Bill of Exchange as under: “A bill of exchange means a bill of exchange as defined in the Negotiable Instruments Act 1881, and includes also a hundi, and any other document entitling or purporting to entitle any person whether named therein or not, to payment by any other person of, or to draw upon any other person for, any sum of money.”

Stroud’s Judicial Dictionary defines Bill of Exchange as under: “An order to pay out of a particular fund is not unconditional within the meaning of this section, but an unqualified order to pay, coupled with (a) an indication of a particular fund out of which the drawee is to reimburse himself or a particular account to be debited with the amount, or (b) a statement of the transaction which gives rise to the bill, is unconditional.”

Jowitt’s Dictionary of English law defines Bill of Exchange as under: “An unconditional order in writing, addressed by one person (A) to another (B) signed by the person giving it, requiring the person to whom it is addressed to pay, on demand, or at a fixed or determinable future time, a sum certain in money to, or to the order of a specified person (c), or to bearer ( Bill of Exchange Act 1882, s3 ) A is called the drawee, B the drawer and C the payee. Sometimes, A the drawer is himself the payee. The holder of a bill may treat it as a promissory note (q.v) if the drawer and drawee are the same person s5(2), when B, the drawee, has, by accepting the bill, undertaken to pay it, he is called the acceptor.”

Definition of Bill of Exchange:

A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument. —Section 5 of the Negotiable Instruments Act, 1881.

Bill of exchange is a negotiable instrument which is payable either to order or to the bearer. Section 13 (1) of the Negotiable Instruments Act, 1881 defines negotiable instruments as “A promissory note, bill of exchange or cheque payable either to order or to bearer”.

Definition: Bill of Exchange, can be understood as a written negotiable instrument, that carries an unconditional order to pay a specified sum of money to a designated person or the holder of the instrument, as directed in the instrument by the maker. The bill of exchange is either payable on demand, or after a specified term.

In a business transaction, when the goods are sold on credit to the buyer, the seller can make the bill and send it to the buyer for acceptance, which contains the details such as name and address of the seller and buyer, amount of bill, maturity date, signature, and so forth.

Features of Bill of Exchange:

The definition of a Bill of Exchange under the act is fairly exhaustive and almost covers all the aspects related to it at one place. A Bill of Exchange requires three parties.
1. The drawer, i.e. the person who is the maker of the bill and who gives the order.
2. The drawee, i.e. the person who is directed to pay the bill and who on affixing his signature becomes the acceptor; and
3. The payee, i.e. the person to whom or to whose order the amount of the instrument is payable unless the bill is payable to bearer.
To analysis of the definition shows the following essential requisites of a bill of exchange:
1. A Bill of Exchange must be in Writing: A bill of exchange may be written in any language, and any form of words may be used, provided the requirements of this section are complied with.
2. A Bill of Exchange must Contain an Order to Pay: When a bill of exchange is drawn, the presumption is that there are funds in the hands of the person to whom the order is given, which are payable in any case to the person giving the order. The essence of a bill of exchange is that the drawer orders the drawee to pay money to the payee. As a bill of exchange is an order, it is necessary that it must, in its terms, be imperative and not perceptive.
3. The Order Contained in the Bill Should be Unconditional: It is the essence of a bill that it should be payable at all events, A bill of exchange cannot be drawn so as to be payable conditionally. The drawer’s order to the drawee must be unconditional and should not make the payment of the bill dependent on some contingency. Where an instrument is payable on a contingency, it does not cease to be invalid by the happening of the event before the expiry of the period fixed for the performance of the obligation, for the instrument must be valid ab initio, and carry its validity on its face. A conditional bill of exchange is invalid. The addition of the words as per agreement does not make a note conditional.
4. Bills Payable Out of a Particular Fund: On the same principle, a bill expressed to be payable out of a particular fund is conditional and invalid, because it is uncertain whether the fund will be in existence or prove sufficient when the bill becomes payable. Thus a bill containing an order to pay ‘out of money due from A as soon as you receive it, or out of money remaining in your hands belonging to X company is invalid.
5. A Bill of Exchange must be Signed by the Drawer: A Bill is not valid unless the drawer signs it and if Drawer has not signed it no action can be maintained against the acceptor or any other party who has affixed his signature these too. If the drawer is unable to write his name, he can sign by a mark in lieu of a signature.
6. The Drawee must be Certain: The next requisite is that the instrument must order a person to pay the amount of the bill. The person to whom the bill is addressed is called the ‘drawee’ and he must be named or otherwise indicated in the bill with reasonable certainty. So that the payee knows the person to whom he should present the instrument for acceptance and payment. A bill cannot be addressed to two or more drawee in the alternative because it would create difficulties as to recourse if the bill were dishonored.
7. The Sum Payable must be Certain: The sum payable is certain even though it is required to be paid with interest, or at the indicated rate of exchange or by installment with the proviso that on the default in the payment of installment, the whole amount shall become due and payable.
8. The Instrument must Contain an Order to Pay Money and Money only: The medium of payment should be the legal tender i.e. money and nothing else. An instrument containing the order to pay money along with some other thing or merely some other thing is not a valid bill. An instrument ordering the delivery up of houses and a wharf in addition to the payment of a sum of money is not a valid bill.
9. The Payee must be Certain: A bill must state with certainty the person to whom payment is to be made. A bill of exchange ought to specify to whom the same is payable, for in no other way can the drawee, if he accepts it, know to whom he may properly pay it so as to discharge himself from all further liability. Where a bill is payable to bearer, the payee is indicated with certainty. Bills are rarely drawn payable to bearer, but cheques are commonly so drawn. A bill cannot be drawn payable to bearer on demand. Where in a bill the drawee or payee is misnamed or misdescribed, extrinsic evidence is admissible to identify him.
June 19, 2018
Commercial Bills: Meaning, Types, and Advantages
A Commercial Bill is one which arises out of a genuine trade transaction, i.e. credit transaction. As soon as goods are sold on credit, the seller draws a bill on the buyer for the amount due. As well as discuss the Treasury Bills, this article explains Commercial Bills. The Commercial Bills explain in their key points; meaning, types, and advantages. The buyer accepts it immediately agreeing to pay the amount mentioned therein after a certain specified date. Thus, a bill of exchange contains a written order from the creditor to the debtor, to pay a certain sum, to a certain person, after a creation period. A bill of exchange is a “self-liquidating” paper and negotiable/it is drawn always for a short period ranging between 3 months and 6 months.

Explain and Learn, Commercial Bills: Meaning, Types, and Advantages!

Meaning of Commercial Bills Market:

The commercial bills are issued by the seller (drawer) on the buyer (drawee) for the value of goods delivered by him. These bills are for 30 days, 60 days or 90 days maturity. If the seller needs funds, he may draw a bill and send it to the buyer for the seller needs funds, he may draw a bill and send it to the buyer for acceptance.

The buyer accepts the bill and promises to make the payment on the due date. He may also approach his bank to accept the bill. The bank charges a commission for the acceptance of the bill and promises to make the payment if the buyer defaults. Once this process is accomplished, the seller can sell it in the market. This way a commercial bill becomes a marketable investment.

Usually, the seller will go to the bank for discounting the bill. The bank will pay him after deducting the interest for the remaining period of the bill and service charges from the face value of the bill. The interest rate is called the discount rate on the bills. The commercial bill market is an important channel for providing short-term finance to business.

However, the instrument did not become popular because of two factors:
1. Cash credit scheme is still the main form of bank lending, and
2. Big buyers in the corporate sector are still unwilling to the payment mode of commercial bills.
Definition of Bill of Exchange:

“An instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the beater of the instrument”.

What is a Bill of Exchange?

According to section 5 of the Negotiable Instruments Act, 1881, defines Bill Of Exchange as,

“A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.”

A promise or order to pay is not “conditional”, within the meaning of this section and section 4, by reason of the time for payment of the amount of any installment thereof being expressed to be on the lapse of certain period after the occurrence of a specified event which, according to the ordinary expectation of humanity, is certain to happen, although the time of its happening may be uncertain.

The sum payable may be “certain”, within the meaning of this section and section and section 4, although it includes future indicated rater of change, or is according to the course of exchange, or is according to the course of exchange, and although the instrument provides that, on default of payment of an installment, the balance unpaid shall become due.

The person to whom it is clear that the direction is given or that payment is to make maybe a “certain person,” within the meaning of this section and section 4, although he misnames or designated by description only.

Types of Commercial Bills:

Many types of commercial bills are in circulation in a bills market. They can broadly classify as follows:

Demand and Using Bills:

Demand bills are others call sight bills. These bills are payable immediately as soon as they present to the drawer. No time of payment specify and hence they are payable at sight. Using bills call time bills. These bills are payable immediately after the expiry of the period mentioned in the bills. The period varies according to the established trade custom or usage prevailing in the country.

Clean Bills and Documentary Bills:

When bills have to be accompanied by documents of title to goods like Railways, receipt, Lorry receipt, Bill of Lading, etc. the bills call documentary bills. These bills can further classify into D/A bills and D/P bills. In the case of D/A bills, the documents accompanying bills have to deliver to the drawee immediately after acceptance. Generally, D/A bills draw on parties who have good financial standing.

On the order hand, the documents have to hand over to the drawee only against payment in the case of D/P bills. The documents will retain by the banker. Till the payment of such bills. When bills are drawn without accompanying any documents they are called clean bills. In such a case, documents will be directly sent to the Drawee.

Inland and Foreign Bills:

Inland bills are those drawn upon a person resident in India and are payable in India. Foreign bills draw outside India and they may be payable either in India or outside India. They may draw upon a person resident in India also. Foreign boils have their origin outside India. They also include bills draw on India make payable outside India.

Export and Foreign Bills:

Export bills are those draw by Indian exports on importers outside India and import bills draw on Indian importers in India by exports outside India.

Indigenous Bills:

Indigenous bills are those draw and accept according to native custom or usage of trade. These bills are popular among indigenous bankers only. In India, they call “Hundis” the Hundis knows by various names such as – Shah Jog, Nam Jog, Jokhani, Termainjog, Darshani, Dhanijog, and so on.

Accommodation Bills and Supply Bills:

If bills do not arise out of genuine trade transactions, they call accommodation bills. They know as “kite bills” or “wind bills”. Two parties draw bills on each other purely for mutual financial accommodation. These bills are discount with bankers and the proceeds are sharing among themselves. On the due dates, they are paying.

Supply bills are those neither draw by suppliers or contractors on the government departments for the goods nor accompanied by documents of title to goods. So, they do not consider as negotiable instruments. These bills are useful only to get advances from commercial banks by creating a charge on these bills.

Operations in Commercial Bills Market:

From the operations point of view, the bills market can classify into two viz.
- Discount Market
- Acceptance Market
Discount Market:

Discount market refers to the market where short-term genuine trade bills discounts by financial intermediaries like commercial banks. When credit sales affect, the seller draws a bill on the buyer who accepts it promising to pay the specified sum at the specified period. The seller has to wait until the maturity of the bill for getting payment. But, the presence of a bill market enables him to get paid immediately.

The seller can ensure payment immediately by discounting the bill with some financial intermediary by paying a small amount of money called “Discount rate” on the date of maturity, the intermediary claims the amount of the bill from the person who has accepted the bill. In some countries, some financial intermediaries specialize in the field of discount.

For instance, in the London Money Market, there are specializing in the field discounting bills. Such institutions are conspicuously absent in India. Hence, commercial banks in India have to undertake the work of discounting. However, the DFHI has been establishing to activate this market.

Acceptance Market:

The acceptance market refers to the market where short-term genuine trade bills accept by financial intermediaries. All trade bills cannot discount easily because the parties to the bills may not be financially sound. In case such bills accept by financial intermediaries like banks, the bills earn a good name and reputation and such bills can readily discount anywhere.

In London, there are specialist firms call acceptance house which accepts bills draw by trades and import greater marketability to such bills. However, their importance has declined in recent times. In India, there are no acceptance houses. The commercial banks undertake the acceptance business to some extent.

Advantages of Commercial Bills:

Commercial bill market is an important source of short-term funds for trade and industry. It provides liquidity and activates the money market. In India, commercial banks lay a significant role in this market due to the following advantages:

Liquidity:

Bills are highly liquid assets. In times of necessity, bills can convert into cash readily using rediscounting them with the central bank. Bills are self-liquidating in character since they have fixed tenure. Moreover, they are negotiable instruments and hence they can transfer freely by mere delivery or by endorsement and delivery.

The certainty of Payment:

Bills draw and accept by business people. Generally, business people use to keeping their words and the use of the bills imposes strict financial discipline on them. Hence, bills would honor on the due date.

Ideal Investment:

Bills are for periods not exceeding 6 months. They represent advances for a definite period. This enables financial institutions to invest their surplus funds profitably by selecting bills of different maturities. For instance, commercial banks can invest their funds on bills in such a way that the maturity of these bills may coincide with the maturity of their fixed deposits.

Simple Legal Remedy:

In the case of the bills dishonor, the legal remedy is simple. Such dishonor bills have to simply note and protest and the whole amount should debit to the customer’s accounts.

High and Quick Yield:

The financial institutions earn a high quick yield. The discount dedicates at the time of discounting itself whereas, in the case of other loans and advances, interest is payable only when it is due. The discounts rate is also comparatively high.

Easy Central Bank Control:

The central bank can easily influence the money market by manipulating the bank rate or the rediscounting rate. Suitable monetary policy can take by adjusting the bank rate depending upon the monetary conditions prevailing in the market.

Commercial Bills: Meaning, Types, and Advantages.

Drawbacks of Commercial Bills:

In spite of these merits, the bills market has not been well developing in India. The reasons for the slow growth are the following:

The Absence of Bill Culture:

Business people in India prefer O.D and cash credit to bill financing, therefore, banks usually accept bills for the conversion of cash credits and overdrafts of their customers. Hence bills are not popular.

The absence of Rediscounting Among Banks:

There is no practice of re-discounting of bills between banks who need funds and those who have surplus funds. To enlarge the rediscounting facility, the RBI has permitted financial institutions like LIC, UTI, GIC, and ICICI to rediscount genuine eligible trade bills of commercial banks. Even then, bill financial is not popular.

Stamp Duty:

Stamp duty discourages the use of bills. Moreover, stamp papers of the required denomination are not available.

The Absence of Secondary Market:

There is no active secondary market for bills. The rediscounting facility is available in important centers and that too restrictive to the apex level financial institutions. Hence, the size of the bills market has been curtail to a large extent.

Difficulty in Ascertaining Genuine Trade Bills:

The financial institutions have to verify the bills to ascertain whether they are genuine trade bills and not accommodation bills. For this purpose, invoices have to scrutinize. It involves additional work.

Limited Foreign Trade:

In many developed countries, bill markets have been establishing mainly for financing foreign trade. Unfortunately, in India, foreign trade as a percentage to national income remains small and it is reflected in the bill market also.

The Absence of Acceptance Services:

There is no discount house or acceptance house in India. Hence specialized services are not available in the field of discounting or acceptance.

The attitude of Banks:

Banks are shy about rediscounting bills even the central bank. They tend to hold the bills till maturity and hence it affects the velocity of the circulation of bills. Again, banks prefer to purchase bills instead of discounting them.
June 19, 2018
Treasury Bills: Meaning, Features, Types, and Importance
Just like commercial bills which represent commercial debt, treasury bills represent short-term borrowings of the Government. As well as discuss the Commercial Bills, this article explains Treasury Bills. The Treasury Bills explain in their key points; meaning, features, types, and importance. Treasury bill market refers to the market where treasury bills buy and sell. Treasury bills are very popular and enjoy a higher degree of liquidity since they issue by the government.

Explain and Learn, Treasury Bills: Meaning, Features, Types, and Importance!

Meaning and Features of Treasury Bills:

A treasury bills nothing but promissory note issued by the Government under discount for a specified period stated therein. The Government promises to pay the specified amount mentioned therein to the beater of the instrument on the due date. The period does not exceed one year. It is purely a finance bill since it does not arise out of any trade transaction. It does not require any “grading” or “endorsement” or “acceptance” since it claims against the Government.

Treasury bill issues only by the RBI on behalf of the Government. Treasury bills issue for meeting temporary Government deficits. The Treasury bill rate of discount is fixed by the RBI from time-to-time. It is the lowest one in the entire structure of interest rates in the country because of short-term maturity and degree of liquidity and security.

Definition of Treasury Bills:

Treasury Bills, also known as T-bills are the short-term money market instrument, issued by the central bank on behalf of the government to curb temporary liquidity shortfalls. These do not yield any interest, but issued at a discount, at its redemption price, and repaid at par when it gets matured.

T-bills are the key segment of the financial market, which utilizes by the government to raise short-term funds, for fulfilling periodic discrepancies between its receipts and expenditure. The difference between the issue price and the redemption value indicates the interest on treasury bills, call as a discount. These are the safest investment instrument of its category, as the risk of default is negligible. Further, the date of issue predetermine, as well as the amount also fixed.

Features of Treasury Bills:

The following features of treasury bills below are;

Form:

T-bills are issued either in physical form as a promissory note or dematerialized form by a credit to Subsidiary General Ledger (SGL) Account.

Eligibility:

Individuals, firms, companies, trust, banks, insurance companies, provident funds, state government, and financial institutions are eligible to invest in treasury bills.

Minimum Bid:

The minimum amount of bid is Rs. 25000 and in multiples thereof.

Issue price:

T-bills are issued at a discount but redeemed at par.

Repayment:

The repayment of the bill is made at par on the maturity of the term.

Availability:

Treasury bills are highly liquid negotiable instruments, that are available in both financial markets, i.e. primary and secondary.

Method of the auction:

Uniform price auction method for 91 days T-bills, whereas multiple price auction method for 364 days T-bill.

Day count:

The day count is 364 days, in a year, for treasury bills.

Besides this, other characteristics of treasury bills include the market-driven discount rate, selling through auction, issued to meet short-term mismatches in cash flows, assured yield, low transaction cost, etc.

Types of Treasury Bills:

In India, there are two types of treasury bills viz.
- Ordinary or regular and
- “Ad hoc” known as “Ad Hoc’s” ordinary treasury bills are issued to the public and other financial institutions for meeting the short-term financial requirements of the Central Government.
These bills are freely marketable and they can buy and sell at any time and they have secondary market also.

On the other hand ‘ad Hoc’s’ are always issued in favor of the RBI only. They are not sold through tender or auction. Also, they are purchased by the RBI on top and the RBI authorizes to issue currency notes against them.

Government explains:

They are marketable sell them back to the RBI. Ad Hoc’s serve the Government in the following ways:
- They replenish the cash balances of the central Government. Just like State Government get advance (ways and means advances) from the RBI, the Central Government can raise finance through this Ad Hocs.
- They also provide an investment medium for investing the temporary surpluses of State Government, semi-government departments and foreign central banks.
Based on periodicity, treasury bills may classify into three they are:

91 days T-bills:

The tenor of these bills complete on 91 days. These are an auction on Wednesday, and the payment makes on the following Friday.

182 days T-bills:

These treasury bills get matured after 182 days, from the day of issue, and the auction is on Wednesday of non-reporting week. Moreover, these are repaying on following Friday, when the term expires.

364 days T-bills:

The maturity period of these bills is 364 days. The auction is on every Wednesday of reporting week and repay on the following Friday after the term gets over.

Treasury bills are backed by some advantages like no tax deducted at source, high liquidity and trade-ability, zero risks of default, transparency, a good return on investment and so on.

Ninety-one day’s treasury bills are issuing at a fixed discount rate of 4% as well as through auctions. 364 days bills do not carry any fixed rate. The discount rate on these bills quotes in the auction by the participants and accepted by the authorities. Such a rate calls cut off rate. In the same way, the rate is fixed for 91 days treasury bills sold through auction. 91 days treasury bills (top basis) can rediscount with the RBI at any time after 14 days of their purchase. Before 14 days a penal rate charges.

Operations and Participants:

The RBI holds day’s treasury bills (TBs) and they issue on top basis throughout the week. However, 364 days TBs are selling through the auction which conducts once in a fortnight. The date of auction and the last date of submission of tenders are notified by the RBI through a press release. Investors can submit more than one bid also.

On the next working day of the date auction, the accepted bids with prices are displaying. The successful bidders have to collect letters of acceptance from the RBI and deposit the same along with the cheque for the amount due on RBI within 24 hours of the announcement of auction results.

Institutional investors like commercial banks, DFHI, STCI, etc, maintain a subsidiary General Ledger (SGL) account with the RBI. Purchases and sales of TBs are automatically recording in this account invests who do not have SGL account can purchase and sell TBs through DFHI. The DFHI does this function on behalf of investors with the bits of the help of SGL transfer forms. The DFHI is actively participating in the auctions of TBs.

It is playing a significant role in the secondary market also by quoting daily buying and selling rates. It also gives buy-back and sell-back facilities for the period’s up to 14 days at an agreed rate of interest to institutional investors. The establishment of the DFHI has imported greater liquidity in the TB market.

The participants in this market are the followers:
1. RBI and SBI.
2. Commercial banks.
3. State Governments.
4. DFHI.
5. STCI.
6. Financial institutions like LIC, GIC, UTI, IDBI, ICICI, IFCI, NABARD, etc.
7. Corporate customers, and.
8. Public.
Through many participants are there, in actual practice, this market is in the hands of the banking sector. It accounts for nearly 90 % of the annual sale of TBs.

Importance of Treasury Bills:

The following importance of treasury bills below is:

Safety:

Investments in TBs are highly safe since the payment of interest and repayment of principal are assured by the Government. They carry zero default risk since they are issuing by the RBI for and on behalf of the Central Government.

Liquidity:

Investments in TBs are also highly liquid because they can convert into cash at any time at the option of the inverts. The DFHI announces daily buying and selling rates for TBs. They can discount with the RBI and further refinance facility is available from the RBI against TBs. Hence there is a market for TBs.

Ideal Short-Term Investment:

Idle cash can profitably invest for a very short period in TBs. TBs are available on top throughout the week at specified rates. Financial institutions can employ their surplus funds on any day. The yield on TBs also assures.

Ideal Fund Management:

TBs are available on top as well through periodical auctions. They are also available in the secondary market. Fund managers of financial institutions build the portfolio of TBs in such a way that the dates of maturities of TBs may match with the dates of payment on their liabilities like deposits of short-term maturities. Thus, TBs help financial manager’s it manages the funds effectively and profitably.

Statutory Liquidity Requirement:

As per the RBI directives, commercial banks have to maintain SLR (Statutory Liquidity Ratio) and for measuring this ratio of investments in TBs takes into account. TBs are eligible securities for SLR purposes. Moreover, to maintain CRR (Cash Reserve Ratio). TBs are very helpful. They can readily convert into cash and thereby CRR can maintain.

Source of Short-Term Funds:

The Government can raise short-term funds for meeting its temporary budget deficits through the issue of TBs. It is a source of cheap finance to the Government since the discount rates are very low.

Non-Inflationary Monetary Tool:

TBs enable the Central Government to support its monetary policy in the economy. For instance excess liquidity, if any, in the economy can absorb through the issue of TBs. Moreover, TBs are subscribing by investors other than the RBI. Hence they cannot mention and their issue does not lead to any inflationary pressure at all.

Hedging Facility:

TBs can use as a hedge against heavy interest rate fluctuations in the call loan market. When the call rates are very high, money can raise quickly against TBs and invest in the call money market and vice versa. TBs can use in ready forward transitions.

Defects of Treasury Bills:

The following defects of treasury bills below are;

Poor Yield:

The yield form TBs is the lowest. Long-term Government securities fetch more interest and hence subscriptions for TBs are on the decline in recent times.

Absence Of Competitive Bids:

Though TBs sell through auction to ensure market rates for the investors, in actual practice, competitive bids are conspicuously absent. The RBI compels to accept these non-competitive bids. Hence adequate return is not available. It makes TBs unpopular.

Absence Of Active Trading:

Generally, the investors hold TBs till maturity and they do not come for circulation. Hence, active trading in TBs adversely affects.
June 19, 2018
Antivirus Softwares: Meaning, Definition, and Functions!
Everything you need to know about antivirus softwares. Understand their meaning, definition, and functions with this blog post! It is a type of utility used for scanning and removing viruses from your computer.

Explain and Learn, Antivirus Softwares: Meaning, Definition, and Functions!

Antivirus is software of scanning system of programs, it is a scan system of software using any error of virus. It is computer scanner software, Antivirus is saved software Virus problems cleaners. While many types of antivirus (or “anti-virus”) programs exist, their primary purpose is to protect computers from viruses and remove any viruses that are found.

Anti-virus software is a program or set of programs that are designed to prevent, search for, detect, and remove software viruses. Other malicious software like worms, trojans, adware, and more. These tools are critical for users to have installed and up-to-date. Because a computer without anti-virus software installed will be infected within minutes of connecting to the internet.

The bombardment is constant, with anti-virus companies updating their detection tools constantly to deal with the more than 50,000 new pieces of malware created daily. Most antivirus programs include both automatic and manual scanning capabilities. The automatic scan may check files that are downloaded from the Internet.

Discs that are inserted into the computer, and files that are created by software installers. The automatic scan may also scan the entire hard drive regularly. The manual scan option allows you to scan individual files or your entire system whenever you feel it is necessary. Since new viruses are constantly being created by computer hackers, antivirus programs must keep an updated database of virus types.

Virus definitions

This database includes a list of “virus definitions” that the antivirus software references when scanning files. Since new viruses are frequently distributed, it is important to keep your software’s virus database up-to-date. Fortunately, most antivirus programs automatically update the virus database regularly. Antivirus software is primarily designed to protect computers against viruses. Many antivirus programs now protect against other types of malware, such as spyware, adware, and rootkits as well.

Antivirus software may also be bundled with firewall features, which help prevent unauthorized access to your computer. Utilities that include both antivirus and firewall capabilities are typically branded “Internet Security” software or something similar. While antivirus programs are available for Windows, Macintosh, and Unix platforms, most antivirus software is sold for Windows systems.

This is because most viruses are targeted towards Windows computers and therefore virus protection is especially important for Windows users. If you are a Windows user, it is smart to have at least one antivirus program installed on your computer. Examples of common antivirus programs include Norton Antivirus, Kaspersky Anti-Virus, and ZoneAlarm Antivirus.

Definition:

Anti-virus software is a software utility that detects, prevents, and removes viruses, worms, and other malware from a computer. Most anti-virus programs include an auto-update feature that permits the program to download profiles of new viruses, enabling the system to check for new threats. Antivirus programs are essential utilities for any computer but the choice of which one is very important. One AV program might find a certain virus or worm while another cannot, or vice-versa.

A virus scanner is possibly the most important piece of software that is installed on your computer. Protection from viruses is only as good as the last update. Out-of-date virus protection may as well not be on the computer; sometimes up to 100 new Viruses a month are released into the wild, so up-to-date virus protection is a must. Virus protection should be updated at least once a week, or preferably automatically when connected to the internet. Virus scanners can be downloaded free from the internet so cost should never be the reason for not having adequate protection.

How Antivirus Software works:

Antivirus software typically runs as a background process, scanning computers, servers, or mobile devices to detect and restrict the spread of malware. Many antivirus software programs include real-time threat detection and protection to guard against potential vulnerabilities as they happen, as well as system scans that monitor device and system files looking for possible risks. Also, understanding QuickBooks Enterprise: An Overview of the Platform’s Features.

Functions:

Several different companies build and offer anti-virus software and what each offers can vary but all perform some basic functions:
- Scan specific files or directories for any malware or known malicious patterns.
- Allow you to schedule scans to automatically run for you.
- Allow you to initiate a scan of a specific file on your computer, or a CD or flash drive at any time.
- Remove any malicious code detected –sometimes you will be notified of an infection and asked if you want to clean the file, other programs will automatically do this behind the scenes.
- Show you the ‘health’ of your computer.
Antivirus software usually performs these basic functions:
- Scanning directories or specific files for known malicious patterns indicating the presence of malicious software.
- Allowing users to schedule scans so they run automatically.
- Allowing users to initiate new scans at any time, and.
- Removing any malicious software it detects. Some antivirus software programs do this automatically in the background, while others notify users of infections and ask them if they want to clean the files.
Always be sure you have the best, up-to-date security software installed to protect your computers, laptops, tablets, and smartphones. Antivirus software, or anti-virus software (abbreviated to AV software), also known as anti-malware, is a computer program used to prevent, detect, and remove malware.

Other things

Antivirus software was originally developed to detect and remove computer viruses, hence the name. However, with the proliferation of other kinds of malware, antivirus software started to protect itself from other computer threats. In particular, modern antivirus software can protect from malicious browser helper objects (BHOs), browser hijackers, ransomware, keyloggers, backdoors, rootkits, trojan horses, worms, malicious LSPs, dialers, fraud tools, adware, and spyware.

Some products also include protection from other computer threats, such as infected and malicious URLs, spam, scam and phishing attacks, online identity (privacy), online banking attacks, social engineering techniques, advanced persistent threat (APT), and botnet DDoS attacks.
June 18, 2018
Personnel Management: Characteristics, Nature, and Scope!

Explain and Learn, Personnel Management: Characteristics, Nature, and Scope!

Personnel management can also be defined as, that field of management which is concerned with the planning, organising, directing and controlling various operative functions of procurement, development, maintenance and utilisation of a labour force in such a way that objectives of company, those of personnel at all levels and those of community are achieved. The Concept of Personnel Management study is – Characteristics of Personnel Management, Nature of Personnel Management, and Scope of Personnel Management! Also learned, PDF Reader, Free Download, Personnel Management: Characteristics, Nature, and Scope!

Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It is a significant part of management concerned with employees at work and with their relationship within the organization.

According to Flippo, “Personnel management is the planning, organizing, compensation, integration, and maintenance of people for the purpose of contributing to organizational, individual and societal goals.”

According to Brech, “Personnel Management is that part which is primarily concerned with the human resource of the organization.”

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Characteristics of Personnel Management:

The definitions on personnel management reveal the following characteristics:

(i) Personnel management is a specialized branch of management and hence all the principles of general management (as well as functions of management) are applicable to personnel management.

(ii) Personnel management is basically concerned with human resources. Personnel management advocates the ways to get best possible results by managing the scarcely available human resources effectively and efficiently.

(iii) Personnel management is concerned with the relationship between employer and employee; between employee and employee; and among employees. By the term employee, we mean to include blue-collar as well as white-collar workers.

(iv) Personnel management concentrates on the development of individual and group in an organization for achieving better results.

(v) Personnel management focuses on employment planning.

(vi) Personnel management gives adequate direction to the developmental activities—of lower-level employees as well as executives.

(vii) Personnel management aims at providing the necessary guidance for improving performance (through performance appraisal of employees) of employees.

(viii) Personnel management aims at maintaining good human relations.

(ix) Above all, personnel management is concerned with recruitment, selection, training, and placement of employees within work organizations.

(x) Personnel management provides for fair and reasonable compensation to employees.

Thus, personnel management is an approach (an approach to deal with human beings in organisation), a point of view (regarding the personnel policies and wage administration), and a technique of thinking (as to how to motivate employees towards higher productivity) and a philosophy of management (of getting things done through people effectively and efficiently).

Nature of Personnel Management:

The emergence of personnel management can be attributed to the writings of human religionists who attached great significance to the human factor.

Lawrence Apply remarked. “Management is personnel administration”.

This view is partially true as management is concerned with the efficient and effective use of both human as well as non-human resources. Thus, personnel management is only a part of the management process. At the same time, it must be recognized that personnel management is inherent in the process of management.

This function is performed by all the managers throughout the organization rather than by the personnel department only. If a manager is to get the best of his people, he must undertake the basic responsibility of selecting people who will work under him and to develop, motivate and guide them.

However, he can take the help of the specialized services of the personnel department in discharging this responsibility.

Personnel management permeates all the functional areas of management such as production management, financial management, and marketing management. That is, every manager from top to bottom, working in any department has to perform the personnel functions.

Though the personnel department is created under the supervision of a person designated as ‘Personnel Manager’, it should not be assumed that the other managers are relieved of this responsibility.

Personnel management is not a ‘one-shot’ function. It must be performed continuously if the organizational objectives are to be achieved smoothly. To quote G.R. Terry, “The personnel function cannot be turned on and off like water from a faucet; it cannot be practiced only one hour each day or one day a week.

Personnel management requires a constant alertness and awareness of human relations and their importance in everyday operations.”

The scope of Personnel Management:

As we recall history, personnel management was basically concerned with recruitment, selection, placement of employees in organizations. Now the scope of personnel management has become wide and is concerned with organizing human resources with a view to maximize output and profits of the organisation and to develop the talent of the employees at work to the fullest possible extent securing personal satisfaction (job satisfaction of the employees) and personal satisfaction (as far as the organisation is concerned).

In the early stage of industrialization, dominated by single-ownership concerns, owner himself used to act as a personnel manager and recruit and select the people of his choice and taste irrespective of the requirements of the job. With the advent of industrialization and the consequent developments, company type and partnership firms came into vogue broadening the scope of personnel management.

The scope of personnel management can be seen in terms of the activities of personnel management discussed hereunder:

(a) Employee training

(b) Recruitment and maintenance of labor force.

(c) Executive development

(d) Determination of equitable wages and Salaries for laborers and employees.

(e) Job analysis and job description

(f) Labour welfare activities-such as education to children of the employee, recreation, sanitary conditions, etc.

(g) Maintaining personnel records.

(h) Maintaining sound human relations in industry.

(i) Settlement of labor disputes.

June 16, 2018
Personnel Management: Meaning, Definition, and Objectives
Personnel Management: An administrative discipline of hiring and developing employees so that they become more valuable to the organization. The Concept of Personnel Management, Meaning, 7 different Definition, and Objectives. It includes (1) conducting job analyses, (2) planning personnel needs, and recruitment, (3) selecting the right people for the job, (4) orienting and training, (5) determining and managing wages and salaries, (6) providing benefits and incentives, (7) appraising performance, (8) resolving disputes, (9) communicating with all employees at all levels.

Explain and Learn, Personnel Management: Meaning, Definition, and Objectives:

Personnel management can define as obtaining, using and maintaining a satisfied workforce. It is a significant part of management concerned with employees at work and with their relationship within the organization. The Factors Influencing and Importance of Financial Decisions!

According to Flippo,

“Personnel management is the planning, organizing, compensation, integration, and maintenance of people for the purpose of contributing to organizational, individual and societal goals.”

According to Brech,

“Personnel Management is that part which is primarily concerned with the human resource of the organization.”

Meaning of Personnel Management:

Personnel/ human resource management is a staff function whose primary role is to help the organization achieve its goals. The operation of the personnel function is dependent on the broad strategy, policies, and structure of the organization. Small companies have different personnel problems than large companies.

Organizations scattered at different places must address problems that do not create problems for centralized organizations. Manufacturing companies have somewhat different personnel concerns than service companies. A large university teaching business management courses are labor-intensive and employ hundreds of professional and non-professional personnel in various departments and areas of specialization.

On the other hand, a capital-intensive firm such as a petroleum refinery employee relatively few workers and its personnel function will be quite different from that of a university teaching management. Whatever strategic or organizational changes occur, the personnel management department must help facilitate these changes through recruitment, selection, training, compensation, and other personnel functions. To accomplish the organization’s goals and support its strategies, personnel objectives and strategies must also be developed.

Definitions of Personnel Management:

”The personnel function is concerned with the procurement, development, compensation, integration, and maintenance of the personnel of an organization to contribute toward the accomplishment of that organization’s major goals or objectives. Therefore, personnel management is the planning, organizing, directing, and controlling the performance of those operative functions.” — Edwin B. Flippo, Principles of Personnel Management.

“Personnel management is that field of management which has to do with planning, organizing, and controlling various operative activities of procuring, developing, maintaining and utilizing a labor force so that the objectives and interest for which the company is established are attained as effectively and economically as possible and the objectives and interest of all levels of personnel and community are served to the highest degree.” — M. J. Jucius, Personnel Management.

“Manpower management effectively describes the processes of planning and directing the application, development, and utilization of human resources in employment.” — Dale Yodder, Personnel Management, and Industrial Relations.

“Personnel Administration is a method of developing the potentialities of employees so that they get maximum satisfaction out of their work and give their best efforts to the organization.” — Pigors and Myres, Personnel Administration.

Some more definitions:

”Personnel Management is that part of management process which is primarily concerned with the human constituents of an organization.” — E.F.L. Brech (ed.) Principles and Practice of Management.

“Personnel management is that part of management function which is concerned with people at work and with their relationships within an enterprise. It aims to bring together and develop into an effective organization the men and women who make up an enterprise and, having regard to the well-being of an individual and working groups, to enable to make their best contribution to its success”. — The British Institute of Personnel Management.

“Personnel Management is that part of the management function which is primarily concerned with human relationships within an organization. Its objective is the maintenance of those relationships on a basis which, by consideration of the well-being of the individual, enables all those engaged in the undertaking to make their maximum personal contribution in the effective working of the undertaking.” — Indian Institute of Personnel Management, Kolkata.

Objectives of Personnel Management:

These classify into two:

(а) General Objectives:

These reveal the basic philosophy of top management towards the labor force engaged in the work and its deep underlying conviction as to the importance of the people in the organization. The following are the most important objectives.

(i) Maximum individual development:

The employer should always be careful in developing the personality of each individual. Each individual differs in nature and therefore management should recognize their ability and make use of such ability effectively and make use of such ability effectively.

(ii) The desirable working relationship between employer and employees:

It is the main objective of personnel management to have a desirable working relationship between employees and employees so that they may co-operate the management.

(iii) Effective molding of human resources as contrasted with physical resources:

Man is the only active factor of production, which engages the other factors of production to work.

(b) Specific objectives:

Following are some of the important activities:

(i) Selection of right type and number of persons required to the organization.

(ii) Proper orientation and introduction of new employees to the organization and their jobs.

(iii) Suitable training facilities for better job performance and to prepare the man to accept the challenge of the higher job.

(iv) Provision of better working conditions and other facilities such as medical facilities.

(v) To give a good impression to the man who is leaving the organization.

(vi) Maintaining good relations with the employees.

Among the more important personnel objectives are the following:
1. To establish employee recruitment and selection systems for hiring the best possible employees consistent with the organization’s needs.
2. Maximize the potential of each employee in order both to attain the organisation’s goals and ensure individual career growth and personal dignity.
3. Retain employees whose performance helps the organization realize its goals and to release those whose performance is unsatisfactory.
4. To ensure organizational compliance with state and central government laws that apply to their function.
The management of any organizational unit or department marketing, finance, accounting or production involves the accomplishment of objectives through the use of the skills and talents of people. As well as, it is considered both a line management responsibility and a staff function.

In any type of organization large, medium or small human resources must be recruited, compensated, developed and motivated and performance appraisal must finalize and implement by managers.

More information;

The role of personnel management in an organization’s strategic management planning is of considerable importance. It helps organizations to find ways to compete effectively at home and internationally. Also, Quality and productivity constitute the core of managing work, organizations, people, and operations because they are critical to costs, competitiveness, and profitability.

It methods such as employee and motivation programs, employees’ training and education and changing the organization’s culture lead to an improvement in quality and productivity in the organizations. So, what we learn? Personnel management can define as the process of fulfilling organizational objectives by acquiring, retaining, terminating, developing and properly using human resources.

Personnel Management: Meaning, Definition, and Objectives, Image form online.
June 16, 2018