Section 3 NI Act: Interpretation-clause

Negotiable Instruments Act, 1881

Section 3 NI Act at a Glance

Section 3 NI Act is the interpretation clause of the Negotiable Instruments Act, 1881. It states that 'banker' includes any person acting as a banker and any post office savings bank.

Section 3 NI Act Bare Act Text

3. Interpretation-clause.

In this Act—

* * * * *

“Banker”.—“banker” includes any person acting as a banker and any post office savings bank;

* * * * *

Amendments to this section
  • Definition of the word "India", which was subs. by Act 3 of 1951, for the definition of the word "State", omitted by Act 62 of 1956, s. 2 and the Sch.
  • Subs. by Act 37 of 1955, s. 2, for the definition of the word "banker".
  • Omitted by Act 53 of 1952, s. 16 (w.e.f. 14-2-1956).

Section 3 NI Act in Simple Words

Section 3 NI Act is the interpretation clause in Chapter I (Preliminary) of the Negotiable Instruments Act, 1881. It says that 'banker' in the Act includes any person acting as a banker and any post office savings bank.

The asterisks mark omitted definitions. Act 62 of 1956 omitted the definition of "India" (which Act 3 of 1951 had put in place of a definition of "State"), and Act 53 of 1952 omitted a further definition from 14 February 1956. Act 37 of 1955 substituted the present definition of "banker".

When Section 3 NI Act Applies

  • Any person acting as a banker is included within the meaning of 'banker' in the Negotiable Instruments Act, 1881.
  • Any post office savings bank is included within the meaning of 'banker' in the Negotiable Instruments Act, 1881.

Example of Section 3 NI Act

Lakshmi holds an account at a post office savings bank in Surat and draws an order on that post office savings bank to pay ₹10,000 on demand to Ayesha. Because Section 3 NI Act states that 'banker' includes any post office savings bank, the post office savings bank in Surat is a banker under the Negotiable Instruments Act, 1881.

FAQs on Section 3 NI Act

What is Section 3 NI Act?▼

Section 3 NI Act is the interpretation clause of the Negotiable Instruments Act, 1881. It states that the word 'banker' in the Act includes any person acting as a banker and any post office savings bank.

Does a post office savings bank count as a banker under Section 3 NI Act?▼

Yes. Section 3 NI Act expressly states that 'banker' includes any post office savings bank as well as any person acting as a banker.

Which amendment substituted the definition of 'banker' in Section 3 NI Act?▼

Act 37 of 1955. Section 2 of that Act substituted the present definition of "banker" in Section 3 NI Act.

Have questions about Section 3 NI Act?

Ask NyayGuru about your situation and get an answer based on the Negotiable Instruments Act, 1881.

Ask NyayGuru →

Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·