CMA Foundation · Fundamentals of Business Laws and Business Communication · Negotiable Instruments Act, 1881
Which of the following is included within the meaning of 'cheque' under Section 6 of the Act?
The electronic image of a truncated cheque is included in the definition of a cheque under Section 6, along with a cheque in electronic form. A promissory note, a hundi or a term bill is not a cheque.
- AA promissory note payable on demand
- BA hundi payable after sight
- CA bill of exchange payable after 60 days
- DThe electronic image of a truncated chequeCorrect
Explanation
Section 6 expressly says a cheque includes the electronic image of a truncated cheque and a cheque in electronic form. The other items are not drawn on a banker and payable on demand as a cheque, or are payable after a period.
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