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Cheque
“A cheque is a written document containing unconditional instructions addressed to the banker, signed by the person who deposited the money with the banker, and identified only on request to a particular person or at his direction. demand to pay the amount of Pay the instrument carrier. “
Types
1. Bearer check
A check is said to be a bearer check if the word “or bearer” is not reversed on the front of the check. A bearer check is paid to the person whose name is on it or who presents it to the bank for payment.
Bearer checks are checks that are paid to the signer, i.e. the bearer of the check presents to the bank. But a check to order is exactly the opposite, since only the person whose name is written on the check by the drawer as the payee can receive payment.
However, such checks are dangerous because if they are lost, anyone who finds them can collect the payment from the bank.
2. Order confirmation
A check is said to be an order check when the word “Bearer” on the face of the check has been reversed and the word “or order” appears on the face of the check instead. Such checks are payable to the person named as payee therein or to another person to whom the check is guaranteed.
3. Uncrossed/ Open Cheque
When a check is not crossed, it is known as an “open check” or “non-crossed check”. Such check cashing is available at bank counters. An open check is either a bearer check or an order check.
4. Cross-check
Crossing the check means drawing his two parallel lines on the face of the check, with or without additional words such as “&CO”. or “Account Beneficiary” or “Non-Transferable”. Personal checks cannot be cashed at bank registers, but can only be credited to the recipient’s account.
5. Anti – Dated Cheque
If the check is dated prior to the date it was submitted to the bank, it is called an “expired check”. Such checks are valid for a maximum of three months from the date the check was issued.
6. Post – dated cheque
If the check date is still in the future (future date), it is called a postdated check. Postdated checks cannot be cashed prior to the date of the check.
7. Stale Cheque
A check presented for payment three months after the date of the check is called an expired check. Expired checks will not be cashed by banks.
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