However, now a demand promissory note and a bill of exchange, finds mention, in the same breath, as the cheque, hence broadening the applicability of the IT Act, not just to the “cheque” but also to demand promissory notes and bills of exchange. Just as paper cheques got slowly replaced or augmented by transfer instructions placed under the Payments and Settlements Systems Act, 2007, with the introduction of this amendment to the First Schedule of the IT Act, it is expected that similar provision be made for the handling of bills of exchange and promissory notes digitally, provided they are issued by one of the regulators viz., the Reserve Bank of India (RBI), National Housing Bank (NHB), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI) and Pension Fund Regulatory and Development Authority(PFRDA)(“Regulatory Authorities”) [Pare 2(i) of S.O.4720 (E)].
Source: Barandbench