Types of Cheques.
By GovJobAdda, Bengaluru 2 years ago 5325 Views
A cheque is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued.
The four main items on a cheque are:
1. Drawer, the person or entity who makes the cheque
2. Payee, the recipient of the money
3. Drawee, the bank or other financial institution where the cheque can be presented for payment
4. Amount, the currency amount
Types of Cheques:
1. Bearer Cheque:
Bearer cheque is payable to any person who presents it for payment at the bank counter is called 'Bearer cheque'.
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:
An open [cheque] is a cheque that is not crossed on the left corner and payable at the counter of the drawee [bank] on presentation of the cheque.
4. Crossed Cheque:
A crossed cheque is any cheque that is crossed with two parallel lines, either across the whole cheque or through the top left-hand corner of the chque.
This symbol means that the cheque can only be deposited directly into a bank account and cannot be immediately cashed by a bank or any other credit institution.
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 three months from the date of the cheque.
6. Post-Dated Cheque:
'Postdated' Any cheque or draft that has a future date written upon it by the user. The amount of the check will not be drawn from the account until the date written on the check.
7. Stale Cheque:
A cheque which a bank will not accept and exchange for money or payment because it was written more than a certain number of months ago
8. Self cheque:
Self cheque means the cheque payable to the drawer himself. Normally, when the drawer is willing to get cash from the bank, they used to write the cheque favouring “Self” and after tendering the cheque to the teller they will get payment for the cheque.
9. Mutilated Cheque
If a cheque is torn into two or more pieces such cheque is Mutilated Cheque. If it presented for payment, such a cheque the bank will not make payment against such a cheque without getting confirmation of the drawer.
10. Blank cheque:
A blank cheque is a cheque that has no numerical value written in, but is already signed.
11. Traveler's cheque:
Traveler's cheque is a fixed denomination note issued by non-banking financial institutions (generally called traveler's cheque issuer) for facilitating international travelers to carry and pay traveling costs safely in their travel. It can be widely used around the world.
12. Banker's cheque:
Bankers cheque, as the name suggests, is a cheque issued by the issuing banker and payable locally, in return of a charge known as 'Exchange' which is payable by the person who wants a Bankers cheque to be prepared by his bankers. The person who wants a bankers cheque to be prepared can either pay to his bankers by cash or from his bank account.
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