E-cheques

Beyond the terms e-tail, e-commerce- e-governance, e-banking a new emerging feature is e-cheque. This e-cheque will ultimately  replace the conventional paper cheque. In India, Section 6 and 1(4) in the Negotiable Instruments Act,1881 has already been amended to include E-cheques. 3 types of instruments fall under the Negotiable instruments Act.

1)     Promissory note

2)     Bills of Exchange

3)     Cheque

Cheque is considered to be a bill of exchange which involves a banker, whereas in the case of bill of exchange the transaction will be between individuals.

One individual may send a cheque to other for a certain amount, which can be sent through Email. Electronic cheques are initiated electronically though they are prototyped on paper cheques. These cheques make use of digital signatures for authentication purpose.

Highlighted benefits:

• Cost Effective
• Suits for micropayments
• Can be done faster.

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