What is a Cheque ? Meaning ↓
Cheque is an of import negotiable musical instrument which tin transportation away move transferred past times mere manus delivery. Cheque is used to brand security together with convenient payment. It is less risky together with the danger of loss is minimised.
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Definition of a Cheque ↓
"Cheque is an musical instrument inward writing containing an unconditional order, addressed to a banker, sign past times the soul who has deposited coin amongst the banker, requiring him to pay on need a for sure amount of coin exclusively to or to the social club of for sure soul or to the bearer of instrument."
Different Kinds / Types of Cheques ↓
1. Bearer Cheque
When the words "or bearer" appearing on the confront of the banking venture fit are non cancelled, the banking venture fit is called a bearer cheque. The bearer banking venture fit is payable to the soul specified therein or to whatsoever other else who presents it to the banking venture for payment. However, such cheques are risky, this is because if such cheques are lost, the finder of the banking venture fit tin transportation away collect payment from the bank.
2. Order Cheque
When the discussion "bearer" appearing on the confront of a banking venture fit is cancelled together with when inward its house the discussion "or order" is written on the confront of the cheque, the banking venture fit is called an social club cheque. Such a banking venture fit is payable to the soul specified therein equally the payee, or to whatsoever i else to whom it is endorsed (transferred).
3. Uncrossed / Open Cheque
When a banking venture fit is non crossed, it is known equally an "Open Cheque" or an "Uncrossed Cheque". The payment of such a banking venture fit tin transportation away move obtained at the counter of the bank. An opened upwards banking venture fit may move a bearer banking venture fit or an social club one.
4. Crossed Cheque
Crossing of banking venture fit agency drawing 2 parallel lines on the confront of the banking venture fit amongst or without additional words similar "& CO." or "Account Payee" or "Not Negotiable". Influenza A virus subtype H5N1 crossed banking venture fit cannot move encashed at the cash counter of a banking venture exactly it tin transportation away exclusively move credited to the payee's account.
5. Anti-Dated Cheque
If a banking venture fit bears a appointment before than the appointment on which it is presented to the bank, it is called equally "anti-dated cheque". Such a banking venture fit is valid upto 3 months from the appointment of the cheque.
6. Post-Dated Cheque
If a banking venture fit bears a appointment which is all the same to come upwards (future date) thus it is known equally post-dated cheque. Influenza A virus subtype H5N1 transportation service dated banking venture fit cannot move honoured before than the appointment on the cheque.
7. Stale Cheque
If a banking venture fit is presented for payment afterwards 3 months from the appointment of the banking venture fit it is called stale cheque. Influenza A virus subtype H5N1 stale banking venture fit is non honoured past times the bank.
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