Section 6 - Cheque - Negotiable Instruments Act, 1881

Cheque . 6. A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form. <!--?xml:namespace prefix = st2 /--> Explanation I. - For the purposes of this section, the expressions- 1 [ (a) a cheque in the electronic form means a cheque drawn in electronic form by using any computer resource and signed in a secure system with digital signature (with or without biometrics signature) and asymmetric crypto system or with electronic signature, as the case may be; ] ( b ) a truncated cheque means a cheque which is truncated during the course of a clearing cycle, either by the clearing house or by the bank whether paying or receiving payment, immedi ately on generation of an electronic image for transmission, substituting the further physical movement of the cheque in writing. Explanation II.- For the purposes of this section, the expression clearing house means the clearing house managed by the Reserve Bank of India or a clearing house recognised as such by the Re serve Bank of India . 2 [Explanation III.- For the purposes of this section, the expressions asymmetric crypto system , computer resource , digital signature , electronic form and electronic signature shall have the same meanings respectively assigned to them in the Information Technology Act, 2000.'. (21 of 2000.)] *************** Notes: 1. Substituted vide Negotiable Instruments (Amendment) Act, 2015, before it was read as, ( a ) a cheque in the electronic form means a cheque which contains the exact mirror image of a paper cheque, and is gener ated, written and signed in a secure system ensuring the minimum safety standards with the use of digital signature (with or without biometrics signature) and asymmetric crypto system; 2. Inserted vide Negotiable Instruments (Amendment) Act, 2015