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Negotiable Instruments Act, 1881

Section 85A: Drafts drawn by one branch of a bank on another payable to order

Chapter VII — Of Discharge from Liability on Notes, Bills and Cheques

85A. w here 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: official text of the Negotiable Instruments Act, 1881.