Question

Kinds of Negotiable Instruments
A cheque is a bill of exchange -.

• A. Which is always drawn on a banker
• B. Which is always payable on demand
• C. (A) or (B)
• D. (A) & (B)

Answer 1

The correct option is D (A) & (B)

As per section 6 of the Negotiable instruments Act, 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.