Introduced in India during the British era, the Negotiable Instruments Act, of 1881 sought to regulate the use of negotiable instruments, including promissory notes, bills of exchange, and checks. 123. The legislation outlines the different guidelines and protocols concerning negotiable instruments, their transmission, and the individuals engaged. 2.To ensure just and transparent transactions, the act further specifies the rights and obligations of persons involved in negotiable instruments. 4.