The Negotiable Instruments Act, 1881, is a foundational law governing promissory notes, bills of exchange, and cheques in India. Enacted during British rule, it standardizes the rules for negotiable instruments to ensure financial security, credibility, and smooth commercial transactions. The Act defines key concepts like negotiability, endorsement, and holder in due course, while establishing legal remedies for dishonored instruments (e.g., cheque bounce cases under Section 138). Over time, amendments—such as the 1988 insertion of Section 138—strengthened penalties for defaulters, promoting trust in banking and trade. Despite calls for modernization, the Act remains largely unchanged, serving as a cornerstone of India’s financial and business legal framework.