What is meant by cheque

A cheque is a negotiable financial instrument that serves as a written order from an account holder to their bank, instructing it to pay a specific sum of money to a designated person or entity. Governed by the Negotiable Instruments Act, 1881, it is a secure tool for fund transfers, debt settlements, and cash withdrawals. Key components include the drawer’s signature, the payee’s name, the date, and the amount specified in both words and figures. Unlike cash, it provides a documented record of the transaction.