Negotiable Instruments Act, 1881 · Chapter VII: Of Discharge From Liability on Notes, Bills and Cheques
Section 85A: Drafts drawn by one branch of a bank on another payable to order
In plain words
Where a draft drawn by one office of a bank on another office of the same bank, payable to order on demand, appears to be indorsed by or for the payee, the bank is discharged by paying it in due course.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
where any draft, that is an order to pay money, drawn by one office of a bank upon another office of the same bank for a sum of money payable to order on demand, purports to be endorsed by or on behalf of the payee, the bank is discharged by payment in due course.]
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 85A
No Supreme Court judgment in our database cites this section yet.