Mark the correct answer:
A draft in the name of 'Ms. Rama' was collected and credited to the account of 'Mr. Rama'. In that case:
1
The bank was negligent and thus not entitled to protection given under Section 131 of NI Act.
2
The bank was negligent and thus entitled to protection given under Section 131 of NI Act.
3
It is defence that bank acted in good faith
4
The bank was not negligent and thus entitled to protection given under Section 131 of NI Act.