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    What Is A Cheque ? Meaning

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    Waseem Mateen
    A cheque is a negotiable instrument used to safely and conveniently make payments. It contains an unconditional order addressed to a banker, signed by a depositor, requiring the banker to pay a certain sum of money to a specified person or bearer. There are different types of cheques including bearer cheques, order cheques, open/uncrossed cheques, crossed cheques, post-dated cheques, and stale cheques. Crossed cheques can only be deposited, not cashed, while post-dated and stale cheques are not honored if presented before or after certain dates.

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    What Is A Cheque ? Meaning

    Uploaded by

    Waseem Mateen
    95 views9 pages
    A cheque is a negotiable instrument used to safely and conveniently make payments. It contains an unconditional order addressed to a banker, signed by a depositor, requiring the banker to pay a certain sum of money to a specified person or bearer. There are different types of cheques including bearer cheques, order cheques, open/uncrossed cheques, crossed cheques, post-dated cheques, and stale cheques. Crossed cheques can only be deposited, not cashed, while post-dated and stale cheques are not honored if presented before or after certain dates.

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    A cheque is a negotiable instrument used to safely and conveniently make payments. It contains an unconditional order addressed to a banker, signed by a depositor, requiring the banker to pay a certain sum of money to a specified person or bearer. There are different types of cheques including bearer cheques, order cheques, open/uncrossed cheques, crossed cheques, post-dated cheques, and stale cheques. Crossed cheques can only be deposited, not cashed, while post-dated and stale cheques are not honored if presented before or after certain dates.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    95 views9 pages

    What Is A Cheque ? Meaning

    Uploaded by

    Waseem Mateen
    A cheque is a negotiable instrument used to safely and conveniently make payments. It contains an unconditional order addressed to a banker, signed by a depositor, requiring the banker to pay a certain sum of money to a specified person or bearer. There are different types of cheques including bearer cheques, order cheques, open/uncrossed cheques, crossed cheques, post-dated cheques, and stale cheques. Crossed cheques can only be deposited, not cashed, while post-dated and stale cheques are not honored if presented before or after certain dates.

    Copyright:

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    Download as PPT, PDF, TXT or read online from Scribd
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    The passage discusses the different types of cheques including bearer, order, open, crossed, anti-dated, post-dated and stale cheques.

    The different types of cheques discussed are bearer, order, open, crossed, anti-dated, post-dated and stale cheques.

    An open cheque can be cashed at the bank counter, while a crossed cheque can only be deposited into an account. An open cheque can be either a bearer or order cheque.

    What is a Cheque ?

    Meaning
    Cheque is an important negotiable instrument which can be transferred by mere hand delivery. Cheque is used to make safe and convenient payment. It is less risky and the danger of loss is minimized.

    Definition of a Cheque
    "Cheque is an instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument."

    Different Kinds / Types of Cheques


    1. Bearer Cheque: When the words "or bearer" appearing on the face of the cheque are not cancelled, the cheque is called a bearer cheque. The bearer cheque is payable to the person specified therein or to any other else who presents it to the bank for payment. However, such cheques are risky, this is because if such cheques are lost, the finder of the cheque can collect payment from the bank.

    2. Order Cheque
    When the word "bearer" appearing on the face of a cheque is cancelled and when in its place the word "or order" is written on the face of the cheque, the cheque is called an order cheque. Such a cheque is payable to the person specified therein as the payee, or to any one else to whom it is endorsed (transferred).

    3. Uncrossed / Open Cheque


    When a cheque is not crossed, it is known as an "Open Cheque" or an "Uncrossed Cheque". The payment of such a cheque can be obtained at the counter of the bank. An open cheque may be a bearer cheque or an order one.

    4. Crossed Cheque
    Crossing of cheque means drawing two parallel lines on the face of the cheque with or without additional words like "& CO." or "Account Payee" or "Not Negotiable". A crossed cheque cannot be encashed at the cash counter of a bank but it can only be credited to the payee's account

    5. Anti-Dated Cheque
    If a cheque bears a date earlier than the date on which it is presented to the bank, it is called as "anti-dated cheque". Such a cheque is valid upto six months from the date of the cheque.

    6. Post-Dated Cheque
    If a cheque bears a date which is yet to come (future date) then it is known as post-dated cheque. A post dated cheque cannot be honoured earlier than the date on the cheque.

    7. Stale Cheque
    If a cheque is presented for payment after six months from the date of the cheque it is called stale cheque. A stale cheque is not honoured by the bank.

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