Banking Receipts (FDR) 🧾

Fixed Deposit Receipt (FDR) is the most common banking receipt.

Meaning 📄

• Acknowledgment by bank that it has received money.
• Contains: Name, Amount, Interest Rate, Maturity Date.

Is it Negotiable? ❌

NO! FDR is NOT a Negotiable Instrument.

• You cannot transfer it by endorsement like a cheque.
• Why? Bank must know who the depositor is (KYC/Tax).

How to Transfer? 🔄

• Assignment: Can be transferred only by Assignment Deed with notice to bank.
• Usually, people just liquidate FD and transfer money.

Loan Against FDR 💰

• Easiest loan.
• Margin: 10-15%.
• Interest: 1-2% higher than FD rate.
• Process: Discharge FDR (Sign on back) + Lien letter.

Quiz Time! 🎯

💡 Final Wisdom: "FDR is a receipt, not money. Keep it safe, but don't try to pay your grocery bill with it!" 🧾🚫

🎉 UNIT III COMPLETE! You have mastered Negotiable Instruments & Loans. From Cheques to Mortgages to FDs!

Next Unit: Unit IV: Introduction to Financial Services - Beyond Banking! 🚀