▶What is a Cheque ? Definition - Kinds and Types of Cheques◀ ********************************************* 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 minimised. ☑ 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. ☑ Square 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 payees 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 three 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 three months from the date of the cheque it is called stale cheque. A stale cheque is not honoured by the bank.
Posted on: Thu, 20 Mar 2014 09:26:54 +0000
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