A cheque is an unconditional order addressed to a banker, signed by the person who has deposited money with a banker, requesting him to pay on demand a certain sum of money only to the order of the certain person or to the bearer of the instrument.
Types of Cheques
Bearer Cheque :- Bearer cheques are the cheques which withdrawn to the cheque's owner. These types of cheques normally used for a cash transaction.
Order Cheque :- Order cheques are the cheques which are withdrawn for the payee(the person whose name is written on the cheque). Before making payment to that payee,cross-checks check the identity of the payee.
Crossed Cheque :- On the Crossed cheques, two lines are made on the top right of the cheque. Amount mentioned on the cheque is only transferred to the bank account of the payee. No cash payment is made.
Account Payee Cheque :- On the Account payee cheque, two lines are made with the word "account payee" on the top right of the cheque. Amount mentioned on the cheque is only transferred to the bank account of the payee whose name is mentioned on the cheque. No cash payment is made. This cheque can not be endorsed to the third party.
Stale Cheque :- In India, if a cheque is not presented to the bank within 3 months from the date written on the cheque is known as a stale cheque.
Post Dated Cheque :- If any cheque issued by a holder to the payee for the upcoming withdrawn date, then that type of cheques are called post-dated cheque.
Ante Dated Cheque :- If date entered on the cheque is prior to the current date, that type of cheque is known as Ante-dated cheque.
Difference between Crossed cheques and Account payee cheques
Crossed cheques can be endorsed to other parties while the Account-payee cheques can't be endorsed and funds are only transferred to the account whose name is mentioned on thechequee.
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