Correct Answer: (1) Negotiable Instruments Act, 1881
Solution:Truncated cheques come under Negotiable Instruments Act, 1881. Section 6 of the Act defines "a truncated cheque" as 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.