Thursday, January 5, 2012

Cheque - Bearer Cheque, Order Cheque, Crossed Cheque etc


Cheque is a document issued by the customer/ depositor to the banker asking to pay money as mentioned in cheque to the bearer of the document.

Types of Cheques:
1. Bearer Cheque
Take a cheque with you have a look to understand it better.  If it says “Pay <name> Or bearer”, cheque is payable to the person mentioned or anyone else who produces the cheque. So the risk is high if the cheque is lost.

2. Order Cheque
If the word “or bearer” is strike off and if its replaced with “Or Order”, cheque is Order Cheque. This kind of cheque can be produced only by the person mentioned as Payee.

3. Uncrossed / Open Cheque
If the cheque is not crossed, it is called as an "Open Cheque". Bearer can receive the payment at the bank counter. It can be a bearer cheque or order cheque.

4. Crossed Cheque
If you put two parallel lines generally on top corner with or without a wording like “a/c payee”, “Not negotiable”, it’s called crossed cheque. You cannot encash it in bank counter. Once you produce the cheque, money will be credited to the payee’s account.

5. Anti-Dated Cheque
If the date mentioned in the cheque is older than the date produced, it is called as "anti-dated cheque". It is valid for 6 months from the date mentioned in the cheque.

6. Post-Dated Cheque
If the date mentioned is future, you cannot produce the cheque until that date.

7. Stale Cheque
If you are producing a cheque where in the date mentioned in the cheque is more than 6 months older, bank will reject the cheque. This cheque is called stale cheque.
8. Cancelled Cheque:

If you put two parallel lines generally in the middle with with a wording as cancelled, it’s called cancelled cheque. This is generally issued for account number verification.
 

2 comments:

  1. thanks a lot dude....it ill help me a lot for my interview preparation....

    ReplyDelete