The document defines a cheque as a bill of exchange drawn on a specified banker that is payable on demand, including electronic images of truncated cheques or those in electronic form. Cheques must be signed by the banker, payable to a certain person, and unconditional orders, distinguishing them from general bills of exchange which can be drawn on any person and may not require acceptance or be payable on demand.

1.  DEFINITION
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 and it includes
the electronic image of a truncated
cheque and a cheque in the electronic
form.”

2.  It is always drawn on a specified banker
 It is payable on demand
 It is an instrument in writing instrument
 It is an un conditional order
 It must be signed by the banker
 Payee should be a certain person

3. CHEQUE BILL OF EXCHANGE
It can be drawn only the banker It can be drawn on any person
including a banker
It does not require any acceptance. It needs acceptance from the drawee
It always payable on demand A bill is payable on demand or after
date
It does not require any stamp It needs stamping except in certain
cases
No grace days are allowed A bill is payable otherwise than on
demand is entitled to three days of
grace after maturity