E-cheques are an electronic payment method that functions similarly to paper checks but uses digitally signed XML documents instead of paper. This technology was developed by IT researchers and bankers to allow for paperless and efficient banking transactions. While e-cheques provide benefits like instant payments and inability to bounce, their use is limited when merchants do not accept them or when multiple signers are required.

2. E-cheques are a mode of electronic payments. E-cheques work the same way as paper cheques and are a legally binding promise to pay.

3. This technology was developed couple of years ago by a consortium of Silicon valley IT researchers and merchant bankers and since then has been promoted by many of the financial bodies.

4. E-cheques work the same way as paper cheques and are a legally binding promise to pay. The payment system uses digitally signed XML documents that provide mechanism to authenticate parties to a transaction. E-cheques are defined using FSML (financial services markup langauge) which allows for addition and deletion of document blocks, signing, co-signing, endorsing, etc. Signatures are accompanied by bank-issued certificates which tie the signer's key to a bank account.

5. Different accounts are used for e-cheques to protect standard chequing account against fraud. Settlement is handled via existing standards - ANSI X9.46 with FSML representation instead of cheque image and ANSI X9.37 cash letter contained in X9.46 encapsulation.

6. It seems that consumers would gain from having E-cheques available to make payments for online purchases. The online merchants on the other hand could receive payments instantly and since the customer’s bank will be involved in the transaction. It would be impossible for an E-cheques to bounce. Banks can do paperless, efficient transactions.

7. The problems come when your merchant does not accept E-cheques. The other problem could be when you have more than one signer or endorser.

8. Sumant Kr. Diwakar