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Types of Cheque - cheque writer in words


Types of Cheque-cheque writer in words

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Types of Cheque: All you need to know about
(Bilingual)
Types of Cheque
A cheque is a document you can issue to your bank, directing it to pay the
specified sum mentioned in digits as well as words to the person whose name
is borne on the cheque.
Cheques are also called negotiable instruments (Under 6, Negotiable
Instruments Act 1881) . In banking terms, a negotiable instrument is a
document that promises its bearer a payment of the specified amount either
on furnishing the document to the banker or by a given date.
? Drawer: the person or entity whose transaction account is to be
drawn. Usually, the drawer's name and account is preprinted on the
cheque, and the drawer is usually the signatory. Payee: the person
or entity who is to be paid the amount.
? Payee: It means the intended recipient of the cheque - the person
or business to whom the payer makes the cheque payable.
? A drawee is the person or other entity that pays the owner of a
check or draft. The holder of the check is the payee and the check
writer the drawer. Most often, if you deposit a check, your bank or
check-cashing service is the drawee.
Bearer Cheque
When the words "or bearer" printed on the cheque is not cancelled, the
cheque is called a bearer cheque. A bearer cheque is made payable to the
bearer i.e. it is payable to the person who presents it to the bank for
encashment. However, such cheques are risky, this is because if such cheques
are lost, So Unknown person of the cheque can collect payment from the bank.
This type of cheque bank does not properly identified who is person
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Order Cheque
The cancellation of the word "Bearer" automatically makes the cheque
an "order" cheque. A cheque which is paid to a named person with the words
`or order' after the payee's name, showing that he or she can endorse it and
pass it to someone else if desired.
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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.
The person whose name appears on the cheque can write the name of another
person on it, and the money will be paid to them.


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Crossed cheque
A crossed cheque is a cheque that is payable only through a collecting banker
and not directly at the counter of the bank. When two parallel transverse
lines, with or without any word, are drawn generally, on the left hand top
corner of the cheque.
The Benefits of crossing is that it reduces the danger of unauthorised persons
getting possession of a cheque and cashing it. A crossed cheque can only be
cashed through a bank of which the payee of the cheque is a customer.
Crossed


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Blank Cheque
A blank cheque that has no monetary value written in, but is already signed.
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Stale Cheque
If a cheque is presented for payment after six months from the date of the
cheque it is called stale cheque. After expiry of that period, no payment will
be made by banks against that cheque.
Stale
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Mutilated Cheque
When a cheque is torn into two or more pieces and presented for payment,
such a cheque is called a mutilated cheque. The bank will not make payment
against such a cheque without getting confirmation of the drawer.

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Post Dated Cheque
In banking, a post-dated cheque is a cheque written by the drawer
(payer)for a date in the future.
Example- Abhinav a check written on the 2nd of the March but dated for
the 28th March will not be cashed for another 26 days.
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- 2 , 28 26

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How to write on a cheque? How to write a cheque: 6 steps. 1. Write the date in the top right corner, next to a box or line that says “Date.”. Always write the same date as the date that you signed the cheque. 2. Write the recipient on the line next to “Pay to the order of.”. If it’s a person, write their first and last name.