Cheques : Introduction and Types.

CHEQUES

A cheque is an unconditional order addressed to a banker,signed by the person who has deposited money with a banker, requesting him to pay on demand a certain sum of money only to the order of certain person or to the bearer of the instrument.

TYPES OF CHEQUES

 Bearer Cheque

Bearer cheque are the cheques which are to be withdrawn to the cheque's owner. These types of Cheques are normally used for cash transaction.

Order Cheque

Order cheque is the cheque which is withdrawn for the payee(the person, for whom cheque is withdrawn). Before withdrawn to that payee, banks cross check the identity of the payee.

Crossed Cheque

On that type of cheques two parallel line made on the upper part of the cheques, then that cheques formed to crossed cheques. This type of cheques payment does not formed in cash while the payment of that type of cheques transferred to the payee account and the normal person's account who recommend by the holder on the cheque.

Account Payee Cheque

When two parallel lines along with a crossed made on the cheque and the word 'ACCOUNT PAYEE' written between these lines, then that types of cheques are called account payee cheque. The payment of the account payee cheque taken place on the person,firm or company on which name the cheque issue.

 Company Crossed Cheques

When two parallel lines along with a crossed made on the cheque and the word 'COMPANY' written between these lines, then that types of cheques are called company crossed cheques. That type of withdrawn does not taken in cash while the person on which the cheque issue, transferred on its account. Normally crossed cheque and company crossed cheque are same.

Stale Cheque

If any cheque issue by a holder does not get withdrawn from the bank till three months, then that type of cheques are called stale cheque.

Post Dated Cheque

If any cheque issued by a holder to the payee for the upcoming withdrawn date,then that type of cheques are called postdated cheque.

Traveller’s Cheques

 It is an instrument issued by a bank for remittance of money from one place to another.