What are the types of bank Cheques?
Based on these essentials, we explore the different types of cheques in India.
- Bearer Cheque. A bearer cheque is the one in which the payment is made to the person bearing or carrying the cheque.
- Order Cheque.
- Crossed Cheque.
- Open cheque.
- Post-Dated Cheque.
- Stale Cheque.
- Traveller’s Cheque.
- Self Cheque.
What are bank Cheques?
A bank cheque is a cheque drawn by a bank. When the cheque is presented, the funds are taken from the bank’s account and not from a customer’s account. Like a personal cheque, a bank cheque shows the amount of the cheque and the name of the payee on the front of the cheque.
Is it safe to accept a bank cheque?
It is best to accept cash, although there is a risk associated with every form of transaction. CASH is the safest, just make sure you have lots of people to cover you. A bank cheque is completely different to a personal cheque and is as good as cash and much safer to carry around, even if that is only short term.
How can I sign a bearer cheque?
How to write a bearer cheque:
- You must first mention the date on which the cheque is issued.
- As the bearer cheque does not contain the name of the bearer, the issuer must write ‘self’ or ‘pay to the order of cash’
- You have to mention the amount of money you want to pay in the rupees section.
Can we deposit a cheque at any bank?
You can deposit a cheque (even of your own account) in any bank to any other account(even to your own account) in any other bank. For multi city cheques payable at that centre there, in clearing, there is no charge. However nowadays you can better transfer the same by NEFT/IMPS.
When can we write self in cheque?
A self-cheque is drawn when the drawer wishes to withdraw money from the bank in cash for his use. This cheque can only be encashed in the account holder’s or the drawer’s bank. This cheque must be used carefully because if it is lost, another person may easily get it encashed by visiting the drawer’s bank.
Why is it called a cheque?
Etymological dictionaries attribute the financial meaning to come from “a check against forgery”, with the use of “check” to mean “control” stemming from a check in chess, a term which came into English through French, Latin, Arabic and ultimately from the Persian word shah, or “king”.