Chapter I - Preliminary
Section 3
Section 3: Interpretation clause and banker definition
Section 3 retains the inclusive definition of banker while showing omitted passages in the current statutory text.
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This article is for general information. Refer to the Negotiable Instruments Act, 1881 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
In this Act—
* * * * *
“Banker”.—“banker” includes any person acting as a banker and any post office savings bank;
* * * * *
Key rule and applicability
The retained definition includes any person acting as a banker and any post office savings bank. The omission markers are part of the consolidation’s presentation of removed material; this guide does not recreate that material as current law.
Limits and related provisions
An inclusive definition does not remove the need to establish the actual role and transaction. It also does not itself grant a banking licence or replace the separate regulatory requirements applicable to a person or institution.
Hypothetical business example
Hypothetical: a business needs to identify the banker for an instrument-related rule. It reads the inclusive definition alongside evidence of the institution’s actual banking role rather than relying only on a trading name.
Practical decision flow
Identify the provision in which the word banker is used.
Assess the person’s actual role against the inclusive definition.
Keep omitted definitions separate from the retained current text and check any distinct regulatory question independently.
Practical checklist
Do
- Identify the provision in which the word banker is used.
- Assess the person’s actual role against the inclusive definition.
- Keep omitted definitions separate from the retained current text and check any distinct regulatory question independently.
Avoid
- An inclusive definition does not remove the need to establish the actual role and transaction. It also does not itself grant a banking licence or replace the separate regulatory requirements applicable to a person or institution.
Glossary
- Inclusive definition
- A definition that expressly includes the listed persons or institutions.
- Omission marker
- A marker showing material removed from the current consolidated provision.
Frequently asked questions
Is a post office savings bank expressly included?
Yes. The retained definition says so.
Should the omitted passages be supplied from an old copy as current text?
No. Their omitted status must be preserved.
Does this section confer permission to operate a bank?
No. The definition does not replace separate banking authorisation requirements.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026