Q.What do you mean by Noting Charges ?

Noting charges are the small fee paid to a notary public for formally recording the dishonour of a bill of exchange. They are first paid by the holder but are finally recovered from the party who dishonoured the bill (the acceptor/drawee).

When a bill of exchange is dishonoured on its due date, the holder may get the fact of dishonour officially recorded by a notary public to obtain legal evidence. The notary notes particulars such as the date of dishonour, the reason, and the amount, and charges a fee for this service. This fee is called noting charges. Although the holder pays the noting charges in the first instance, they are an expense caused by the defaulting party, so they are u …