Cheques and its types

A cheque is a piece of document/paper which orders the bank to transfer money from the bank account of an individual or an organization to another bank account.


Bearer Cheque- The bearer cheque is a type of cheque in which the bearer is authorized to get the cheque en-cashed that is the person who carries the cheque to the bank has the authority to ask the bank for encashment.

Order Cheque- This type of cheque cannot be endorsed, i.e., only the payee, whose name has been mentioned in the cheque is liable to get cash for that amount.

Crossed Cheque- In this type of cheque, no cash withdrawal can be done. The amount can only be transferred from the drawer’s account to the payee’s account. Any third party can visit the bank to submit the cheque.

Account Payee Cheque- This is the same as the account payee cheque but no third party involvement is required. The amount shall be transferred directly to the payee’s account number.

Stale Cheque- In India, any cheque is valid only until 3 months from the date of issue. So if a payee moves to the bank to get withdrawal for a cheque which was signed 3 months ago, the cheque shall be declared a stale cheque.

Apart from it there are some other types of cheques too. Like the post dated cheque,self cheques,blank cheque and multinated cheques.

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