Negotiable Instruments • Banking Exams
Inland Instruments: Definition, Features, Examples & Banking Exam Notes
An inland instrument is a negotiable instrument—such as a cheque, bill of exchange, or promissory note—drawn or made in Bangladesh and made payable either in Bangladesh or to a resident in Bangladesh. It is the opposite of a foreign instrument. Table of Contents
- Meaning
- Key Features
- Difference between Inland & Foreign Instruments
- Practical Examples
- Importance in Banking
- Exam Pointers
- FAQs
1) Meaning
As per the Negotiable Instruments framework, an inland instrument is:
- Drawn or made in Bangladesh
- Payable in Bangladesh, or
- Drawn upon a person resident in Bangladesh
In short: Made/drawn inside the country and payable inside the country or to a resident.
2) Key Features of Inland Instruments
- Always connected with domestic jurisdiction.
- Governed by the Negotiable Instruments Act of the country.
- No foreign element involved in drawing or payment.
- Banking rules & protections apply within national boundaries.
- Legal disputes handled under domestic courts.
3) Inland vs Foreign Instruments
AspectInland InstrumentForeign Instrument Place of DrawingIn BangladeshOutside Bangladesh PayableWithin Bangladesh / to a residentOutside Bangladesh / to non-resident Law GoverningBangladesh NI ActForeign law / international rules JurisdictionBangladeshi courtsForeign courts / multiple jurisdictions
4) Practical Examples
- A cheque drawn in Dhaka, payable in Khulna.
- A bill of exchange drawn in Chittagong, payable to a resident in Rajshahi.
- A promissory note signed in Khulna, payable in Sylhet.
5) Importance in Banking
- Most domestic transactions use inland instruments.
- Easy enforcement under local laws.
- Important for bankers to classify instruments correctly.
6) Exam Pointers
- Definition keyword: Drawn in Bangladesh & payable in Bangladesh or to resident.
- Opposite term: Foreign Instrument.
- Jurisdiction: Domestic courts.
7) FAQs
Is a cheque drawn in Dhaka and payable in Kolkata inland?
No. Since payable outside Bangladesh, it is a foreign instrument. Why are inland instruments important?
Because the majority of transactions within a country use them; they simplify enforcement and reduce cross-border legal issues.
8) বাংলা নোট (Bangladesh Context)
Inland instrument বলতে বোঝায়—যে ইন্সট্রুমেন্ট বাংলাদেশে তৈরি বা ইস্যু হয়েছে এবং যা বাংলাদেশেই পরিশোধযোগ্য অথবা কোনো বাংলাদেশী বাসিন্দাকে পরিশোধযোগ্য।
Posted in: Banking Law & Practice | Series: Negotiable Instruments — Part 9 (Inland Instruments)
Prepared for: Banking Professional Exam Assistant
