Wednesday, 27 August 2014

Types of Cheques

A cheque is a document that orders a bank to pay money from the account. Here are the some types of cheques:
  • Order Cheque: A cheque which is payable to a particular person or his order is called an order cheque.
  • Bearer Cheque: A cheque which is payable to a person whosoever bears, is called bearer cheque.
  • Blank Cheuqe: A cheque on which the drawer puts his signature and leaves all other columns blank is called blank cheque.
  • Stale Cheque: The cheque which is more than three months old is a stale cheque.
  • Multilated Cheque: If cheque torn into two or more pieces, it is termed as multilated cheque.
  • Post Dated Cheque: If a cheque bears a date later than the date of issue, it is termed as post dated cheque.
  • Open Cheque: A cheque which has not been crossed is called an open cheque. Even if a cheque and subsequently the drawer has cancelled the crossing at the request of the payee anf affxes his full signature with the words ' crossing cancelled pay cash', it becomes an open cheque.
  • Crossed Cheque: A cheque which carries to parallel transverse lines across the face of the cheque with or without the words 'I and co', is said to be crossed.
  • Gift Cheque: Gift cheques are used for offering presentations on occasions like birthday, wedding and such other situations. It is available in various denominations.
  • Traveller's Cheque: It is an instrument issued by a bank for remittance of money from one place to another.

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