Cheques

CHEQUES

19.05.2008 Pay…… Prajwal ……………………………………… OR ORDER Rupees One Lakh Fifty Thousand only ………..………………………… …………………………………………………… Rs. 150000 A/ c No. ………. LF. …….Intls. ……

STATE BANK OF INDIA

KUKATPALLY, HYDERABD

Presentation by

-Sd-

(UJJWAL)

Prof. Vighneswar

Definitions of a „Cheque‟

• A Cheque is a “Bill of Exchange drawn on a specified banker and not

expressed to payable otherwise than on demand” (Sec 6)

• A Cheque is a bill of exchange which is always

– (i) drawn on a banker specified therein – (ii) payable on demand The author of the Cheque is called the „Drawer‟ The Bank who is directed to pay is called the „Drawee bank‟ The person who is entitle to receive payment is called the „Payee‟ The bank which pays the cheque is called the „Payee bank‟

19.05.2008 Pay………………………………………………………………………..or Bearer ………………………………………………………………………………….. ……………………………………….. Rs. 150000 A/ c No. ………. LF. …….Intls. …… STATE BANK OF INDIA Signed KUKATPALLY, HYDERABD

7/11/2011 Presentation by: Prof. VIGHNESWAR

•

Specimen of A Cheque:

Explanations about „Cheque‟

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. Explanation I.-For the purposes of this section, the expressions(a) "A cheque in the electronic form" means a cheque which contains the exact mirror mage of a paper cheque, and is generated, written and signed in a secure system ensuring the minimum safety standards with the use of digital signature (with or without biometrics signature) and asymmetric crypto system; (b) "A truncated cheque" means a cheque which is truncated during the course of a clearing cycle, either by the clearing house or by the bank whether paying or receiving payment, immediately on generation of an electronic image for transmission, substituting the further physical movement of the cheque in writing....