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    Cheque B&I

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    21BCB27 Lakshmi.E
    There are several types of cheques: bearer cheques allow anyone possessing the cheque to cash it, while order cheques require the payee's endorsement. Crossed cheques specify the payee's bank account and are safer to use. Open cheques can be cashed at either bank and are transferable, while post-dated cheques bear a future date and cannot be cashed until that date.

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    Cheque B&I

    Uploaded by

    21BCB27 Lakshmi.E
    11 views1 page
    There are several types of cheques: bearer cheques allow anyone possessing the cheque to cash it, while order cheques require the payee's endorsement. Crossed cheques specify the payee's bank account and are safer to use. Open cheques can be cashed at either bank and are transferable, while post-dated cheques bear a future date and cannot be cashed until that date.

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    Cheque-B&I

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    There are several types of cheques: bearer cheques allow anyone possessing the cheque to cash it, while order cheques require the payee's endorsement. Crossed cheques specify the payee's bank account and are safer to use. Open cheques can be cashed at either bank and are transferable, while post-dated cheques bear a future date and cannot be cashed until that date.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    11 views1 page

    Cheque B&I

    Uploaded by

    21BCB27 Lakshmi.E
    There are several types of cheques: bearer cheques allow anyone possessing the cheque to cash it, while order cheques require the payee's endorsement. Crossed cheques specify the payee's bank account and are safer to use. Open cheques can be cashed at either bank and are transferable, while post-dated cheques bear a future date and cannot be cashed until that date.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    TYPES OF CHEQUE

    Bearer Cheque

    A bearer cheque is the type of cheque that allows the person bearing or carrying the
    cheque to the bank to receive the payment specified on the cheque. These cheques have the
    words “or bearer” printed in front of the name of the payee. It means that the amount of the
    cheque issued can be either received by the payee or the bearer.

    Order cheque

    The second type of cheque is the order cheque. An order cheque is the one that has the words
    “or bearer” cancelled out. It means that only the individual whose name is mentioned as the
    payee can receive the specified sum of money.

    Crossed cheque

    A crossed cheque is a type of cheque where the issuer makes two slanted parallel lines on the
    top left corner of the cheque, with the word ‘a/c payee’ written. It means that the specified sum
    of the cheque, regardless of who is handing it over, will only be transferred to the
    individual/organisation whose name is mentioned as the payee. A crossed cheque is also safer
    because it can be cashed only at the payee’s bank.

    Open cheque

    An open cheque does not have crossed lines, and hence, is also called an uncrossed cheque.
    An open cheque can be cashed at either of the banks, namely, the payer’s bank or the
    payee’s bank. Also, an open cheque is transferable by the payee, which means they can
    make someone else the payee. The issuer of the open cheque is required to sign on both the
    front and back of the cheque.

    Post-dated cheque

    A post-dated cheque bears a date later than the date it was issued on. It can only be cashed
    after the date specified by the payer. The post-dated cheque can be valid after the mentioned
    date but not before it. Hence, even if it is presented to the bank, the bank will not process it
    until the mentioned date.

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