Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | Negotiable Instruments & Basics

Q1: Under Section 6 of the Negotiable Instruments Act, 1881, a cheque is defined as a bill of exchange drawn on a specified banker and is expressly characterized by which of the following features?

A
It is payable only upon the expiry of a fixed period
B
It is payable on demand
C
It requires acceptance by the drawee before payment
D
It must always be crossed to be valid
✅ Correct Answer: B
A cheque is defined as a bill of exchange drawn on a specified banker and payable on demand.
This distinguishes it from other bills of exchange which may be payable after a fixed period.