Banks freely negotiate cheques drawn by public i.e., individuals, firms, companies, etc. and not negotiate cheques issued by Government departments. Explain.

The cheques issued by public are negotiable instruments as per Negotiable Instrument Act, 1881, whereas the cheques issued by the Government Departments are not covered under Negotiable Instrument Act, 1881. Thus, negotiability of private cheques by the banks covers the bank's rights to claim the amount from the drawer or endorsers as holders for value which is not in the case of the cheques issued by the Government Departments.