Types of Cheques and its Categorization with their features were clearly given here. The differences between Open Cheque, Order Cheque, Crossed Cheque or Account Payee Cheque were explained here. A Cheque is called “Open” when it is possible to get cash over the counter at the bank. A Cheque which is payable to any person who presents it for payment at the bank counter is called ‘Bearer Cheque’. The Team IG will be always direct the Aspirants in a correct way to crack the all competitive exams. So here we are providing you with the details about Cheque as follows.
What is Cheque?
A cheque is a negotiable instrument instructing a financial institution to pay a specific amount of a specific currency from a specified transactional account held in the drawer’s name with that institution. Both the drawer and payee may be natural persons or legal entities. Cheques are order instruments, and are not in general payable simply to the bearer as bearer instruments are, but must be paid to the payee.
Types of Cheques & Important Terms
1.) Open Cheque
2.) Crossed Cheque
3.) Bearer Cheque
4.) Order Cheque
Categorization of Cheques
Ante-dated Cheques: Cheque in which the drawer mentions the date earlier to the date of presenting it for payment. For example, a cheque issued on 20th August, 2014may bear a date 5th August 2014.
Stale Cheque: A cheque which is issued today must be presented to the bank for payment within a stipulated period. After expiry of that period, on payment will be made and it is then called ‘Stale Cheque’.
Mutilated Cheque: In case a cheque is torn into two or more pieces and presented for payment, such cheque is called “Mutilated Cheque”. The bank will not make payment against such a cheque without getting confirmation of the drawer. But is a cheque is torn at the corners and no material fact is erased or canceled, the bank may make payment against such a cheque
Post-date Cheque: Cheque on which drawer mentions a date which is subsequent to the date on which it is presented, is called ‘Post-dated Cheque’. For example, if a cheque presented on 5th April 2015 bears a date of 20th April 2015, is is a post-dated cheque. The bank will make payment only mon or after 20th April 2015.
Blank Cheque: In this Case, the drawer use put their sign alone and the Other columns will be left as empty.
Self Cheque: The Account holder can draw the money for their self-use from their home branch is called as Self Cheque.
A payee is a person or organization that receives a payment. The payment can be in any form, including cash, a check, or an electronic transfer of funds.
The person, who paying money for goods or services is the payer. This includes any person or corporation paying for a purchase or one providing the payment in a transaction.
It describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the Cheque or draft.
A person who signs a Cheque to his or her bank ordering the latter to pay the face amount of the Cheque to the payee.
|30 Days Study Plan for IBPS Clerk Mains 2017|
|Days||Quantitative Aptitude||Current Affairs||Static GK / Banking Awareness||Reasoning||English|
|Day-1||Simplification, Wrong term in Number Series||Sep 1-7||CMs and Governors / About RBI and its Responsibilities||Coding and Decoding||Errors in Articles and Preposition|
|Day-2||Average, Percentage and Partnership||Sep 8-14||Country, Capital and Currency (1sthalf) – HQ of banks and Heads||Blood Relationship||Errors in Nouns and Pronouns|
|Day-3||Ratio and Problems based on Ages||Sep 15-21||Country, Capital and Currency (2ndhalf) – Types of Cheques||Direction Sense||Errors in Conjunction and Tenses|