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.

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

CHEQUE It can be drawn only the banker It does not require any acceptance. It always payable on demand It does not require any stamp No grace days are allowed

BILL OF EXCHANGE It can be drawn on any person including a banker It needs acceptance from the drawee A bill is payable on demand or after date It needs stamping except in certain cases A bill is payable otherwise than on demand is entitled to three days of grace after maturity