Ravi maintains a current account with XYZ Bank in Delhi. On 15th March 2025, a cheque was issued in his favour by Meena for ₹2,50,000 towards payment of goods purchased. Instead of sending the physical cheque to Meena's

Section 6 of the Negotiable Instruments Act, 1881 (As amended in 2002 and 2015), provides that 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. Despite the amendment as is evident the basic definition of the cheque has been retained and the definition has only been enlarged to include cheques in the above form as well. Here in this definition "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. The expression 'clearing house' means the clearing house managed by the Reserve Bank of India (RBI) or a clearing house recognised as such by RBI. In the given situation, XYZ Bank scanned the cheque and transmitted its electronic image through a Reserve Bank of India's recognised clearing house. This squarely falls within the definition of a truncated cheque. Hence, the transmission of an electronic image by a recognised clearing house is legally valid. Meena's objection based on absence of physical movement of cheque has no merit and Ravi's account can be credited with the amount mentioned in the cheque.