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      Question

      A 'cheque' under Section 6 of the Act is a bill of

      exchange that is:
      A Drawn on a specified banker and not expressed to be payable otherwise than on demand Correct Answer Incorrect Answer
      B Drawn on any person and payable after a fixed period Correct Answer Incorrect Answer
      C Always payable to bearer only Correct Answer Incorrect Answer
      D Payable only in physical form and never electronically Correct Answer Incorrect Answer
      E An unconditional promise drawn by a banker Correct Answer Incorrect Answer

      Solution

      Section 6 defines a cheque as a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. The definition was amended in 2002 to include the electronic image of a truncated cheque and a cheque in the electronic form. Thus a cheque is always payable on demand and is drawn on a specified banker, distinguishing it from an ordinary bill of exchange. It can be payable to order or bearer, not bearer only.

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