CHEQUES

CHEQUES
Open / Bearer Cheque
Open Cheque or Bearer Cheque
This type of Cheques are risky in nature for drawer. When the word “Bearer” on the cheque
is not crossed or cancelled, the cheque is called a bearer cheque. Open / Bearer Cheques are
payable to person specified in the instrument or any person who posses it and present for
payment over the counter. In case of cheque is lost, person who find it can collect payment
from the bank.
Order Cheque
Order Cheque
When the word “Bearer” written on cheque is crossed or cancelled it becomes an order
cheque. An order Cheque is payable to a specified person named in the cheque or any other to
whom it is endorsed.
Crossed Cheque or Account Payee Cheque
Crossed Cheque
The person who issue or write the cheque specify its as account payee by simply making two
parallel lines on top left or middle or right hand corner of the cheque. This type of cheque can
not be encashed over the counter. Considered as safest type of cheque, it can only be credited
to payee’s account whose name is mentioned in the Cheque.
Others
Anti Dated Cheque

Cheque bearing the date earlier than the date of presentation for payment is known as anti
dated cheque.Note : All Types of Cheque are valid for three month from the date of issue (or
written on cheque).
Post Dated Cheque
Cheque bearing the date which is yet to come in future is called Post Dated Cheque. Cheque
is honored only on or after the date (upto three months) written on cheque.
Stale Cheque
A Cheque turns stale after three months of the date written on cheque. A Stale Cheque can
not be honored by the bank.
Mutilated Cheque
When cheque gets torn into two or more pieces and presented in bank for payment. Such
cheques are called mutilated cheque. Bank requires confirmation by the drawer before
honoring such cheques.
Self Cheque
Self Cheque Example

The Cheque in which ‘self’ is written at the name of payee is known as Self Cheque. A
person can withdraw money from his own account using self cheque. Such type of Cheque
should not be crossed and ‘or bearer’ not to be stricken off. Any person either you or anyone
else can withdraw the money using self cheque.
Blank Cheque
Blank Cheque is a cheque which is only signed but payee name, amount and date is not
written. Such cheques are risky, must be kept in safe custody. As in case if blank cheque lost,
anyone who find may write any amount and withdraw money from your account
fraudulently.
Banker’s Cheque
Banker’s Cheque, also known as pay order is non-negotiable instrument issued by bank on
behalf of the customer. It contains an order to pay a specified sum to the specified person in
the same city.
Cancelled Cheque
Cancelled
cheque
A Cancelled Cheque refer to any cheque that has strike marks on it with word ‘cancelled’
written across. Such types of cheque are generally used to set up an ECS service from the
account. It act as proof that you own a bank account. They are also used to open demat
account, purchasing insurance policy, withdraw fund from EPF account etc. A cancelled
cheque need not to be signed.
Travelers Cheque
A travelers cheque is a cheque issued by bank or financial institution that can be used as
form of payment. It is used for making payment in foreign country, after being endorsed by
signature of the holder. Travelers cheques are issued in various monetary denominations –
USD, EURO, Japanese Yen, CAD, AUD etc.
Gift Cheque
Cheque issued in decorative form for a fee by banks for customer who want to use for the
purpose of gifts or prize on special occasion. They are usually large in size. Cheque includes
both electronic image of a truncated cheque and a cheque in electronic mode.
________________________________________________________________________-
Inchoate Cheque- . Where one person signs and delivers to another a paper stamped
in accordance with the law relating to negotiable instruments then in force in [India], and
either wholly blank or having written thereon an incomplete negotiable instrument, he
thereby gives prima facie authority to the holder thereof to make or complete, as the
case may be, upon it a negotiable instrument, for any amount specified therein and not
exceeding the amount covered by the stamp. The person so signing shall be liable upon
such instrument, in the capacity in which he signed the same, to any holder in due
course for such amount :
Provided that no person other than a holder in due course shall recover from the person
delivering the instrument anything in excess of the amount intended by him to be paid
thereunder.
Banker’s Cheque
A bank is the issuer of these types of cheques. The bank issues these cheques on behalf of an
account holder to make a remittance to another person in the same city. Here the specified
amount is debited from the account of the customer, and then, the cheque is issued by the
bank. This is the reason banker’s cheques are called non-negotiable instruments as there is no
room for banks to dishonour these cheques. They are valid for three months. They can be
revalidated provided specific conditions are met.

CHEQUES

Uploaded by

Copyright:

Available Formats

CHEQUES

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CHEQUES

Uploaded by

Copyright:

Available Formats

CHEQUES

Open / Bearer Cheque

Open Cheque or Bearer Cheque

Crossed Cheque or Account Payee Cheque

Anti Dated Cheque

Post Dated Cheque

Self Cheque Example

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.