Banks offer various types of instruments through which the financial transactions can take place which are negotiable and nonnegotiable banking instruments.
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Banks offer various types of instruments through which the financial transactions can take place.
Before going into details of the banking instruments, one should think about two types instruments.
Non-negotiable instruments are those instruments which aren't transferable from one person to the other and hence, they are specific in nature.
Those instruments are checks, bank draft, bill of exchange and promissory notes.
They can only be redeemed by the owner and others cannot redeem it at any cost.
Moreover, promissory notes or demand drafts also play a key part in banking instruments.