Explain the following statements by giving brief reasons in the context of provisions contained under Banking Regulation Act and the prevelant banking practice by referring the provisions of Negotiable Instrument Act? (v

Under Section 25 of Negotiable Instrument Act, if a bill of exchange falls due on a holiday, it is deemed to be due on the immediately preceding working day. This uniform rule helps business people to discharge their liabilities on the due date as also arrange for banking transactions smoothly. The Banks pay interest for the holiday if the TDR matures on a holiday in terms of RBI instructions, as the benefit of funds is enjoyed by the banks. Hence, the TDR is payable on the next working day. It is also to be noted that if the term deposit is repaid the previous working day, the customer will lose one day's interest, which will affect his benefit.