What is Banker’s Reciept?
It is a receipt issued by one bank to another confirming sale of certain securities by the former to the later, acknowledging receipt of payment for securities sold with an undertaking to deliver the securities within the specified, in trust for the later, till the securities are delivered. A banker receipt is valid for 30 days and is non-negotiable instrument.
On a review of the use of BRs should be redeemed only by actual delivery of scrips withib the reduced validity period of 15 days as against 30 days earlier. Otherwise, The BRs should be deemed as dishonored and the issuer bank should refer the case with explanation to the RBI.