Types of Cheque in Indian Banking System Features of Different Types of Cheques
• ATM – If you don’t have an active net banking or mobile banking service, you can visit your nearby ATM and access your account using the debit card and pin. Later, navigate to the services section, choose the ‘issue a new chequebook’ option and proceed as instructed. • A cheque consists of cheque number, MICR, and entries to mention the payee’s name, drawn amount, and signature of the drawee. • Signed cheques without any amounts mentioned in them are known as blank cheques. An order cheque is payable to a specified person whose name is on the cheque.
A stale cheque is a cheque that has not been encashed or deposited in the account for six months or more. Depending on the bank, this timeframe can vary slightly. Banks do not accept or process stale cheques due to dishonouring or fraud risks. The security of this cheque is low, especially if it is lost or stolen because any person who possesses it can encash it.
This type of cheque is issued when payment is needed at a later date. For example, a landlord may accept a cheque for rent payment at a later date or a business may issue one to a supplier for the purchase of goods and services. A cheque is a piece of document/paper which orders the bank to transfer money from the bank account of an individual or an types of cheque in india organisation to another bank account. Axis Bank offers a range of services to make cheque transactions smooth and hassle-free. Whether you’re depositing a cheque or cashing it, Axis Bank ensures a seamless experience.
These are some of the essential points a candidate who is preparing for any banking exam should be aware of. Most of the banking exams asks questions related to the types of Bank Cheques. So, you should know the types and there features as mentioned in this article. You can use your wet cheque to get it encashed if the cheque is in right condition. If the information mentioned on the cheque is visible, authentic and complete. The below mentioned points will clarify as to why do people use cheques to transfer funds.
So, individuals must be cautious when filling out details. The following are the important things to keep in mind while writing a cheque. • Online mode – You can log into your net banking account and navigate to the services section to request a new chequebook.
Post-dated cheques are considered to be less secure than other types of cheques because they can be lost or stolen and cashed before the due date. One of the most commonly used financial instrument to make payment and receive payment is cheque. A cheque is a written order to a financial institution to pay a certain amount of money from a person’s account to the person in whose name is written on the cheque. A cheque can be used to pay bills, purchase goods or services, or withdraw cash.
How to Write a Cheque?
It is used for various transactions, such as paying bills, transferring funds, and withdrawing cash from your account. A cheque is the cheque where the drawer usually issues a self-cheque to his or herself. Any person can issue a self cheque when the drawer wishes to withdraw money from the bank in cash for his use. A self cheque can only be encashed in the account holder’s or the drawer’s bank.
It is important to recognise various types of cheques to understand their proper utilisation. This blog takes a look at the different types of cheques and their importance in the financial landscape. An open cheque is a form of leaf that can be used to obtain payment from a bank or to put into one’s own account. This cheque can also be issued to another person by the bearer.
What is the Significance of an Account Payee Cheque?
To find the cheque number, you can look at the bottom left corner of your cheque leaf. The first 6 digits that appear on the leaf are your cheque number. The remaining numbers denote the details of issuing branch, city, and the account linked. • Digital money transfer methods are becoming popular since cheques are a bit time-consuming to process payments.
It is a negotiable instrument used to carry a transaction. There are different types of cheques issued by the bank. A crossed cheque refers to the cheque in which the drawer makes two parallel transverse lines at the top left corner of the cheque. The person who initiates or writes the cheque is known to be the Drawer and the person whose name will be written on the cheque is known to be the payee. A cheque consists of the amount of money that has to be transferred along with the date, payee’s name, and signature of the drawer.
Stale Cheque
Use any of the below-mentioned methods to get a new chequebook. Here are some notable advantages and disadvantages of using cheques. • Similarly, the amount mentioned on the cheque cannot be altered.
What is the Purpose of Bank Cheques?
The payee’s identity may be cross-checked by the bank before encashing the sum of money. Cheques are valid for three months from the date of issuance. After this period, they become stale and cannot be processed.
- I ensure a range of subjects are covered with precision and clarity.
- You can use bearer cheques for convenient cash withdrawals or payments.
- If the cheque is lost, stolen or even misplaced, anyone can easily take advantage of the cheque and withdraw cash from the drawer’s account.
- One of the most commonly used financial instrument to make payment and receive payment is cheque.
- If you’re looking for a reliable banking partner, consider opening a Savings Account with Axis Bank to enjoy these benefits and more.
- The person who presents the cheque to the bank for payment will receive the funds, regardless of who the cheque is made out to.
A self-cheque is a cheque written in one’s own name, with the drawer and payee being the same person. Every cheque is unique and contains a unique cheque number, MICR, and IFSC code. The issuing party is called the drawer of the cheque, and the one it is issued to is called the payee. If the cheque is torn from the corners and all the important data on the cheque is intact, then the bank may process the cheque further. If a cheque reaches the bank in a torn condition, it is called a mutilated cheque. If the drawer mentions a date prior to the current date on the cheque, it is called ante dated cheque.
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. Please consult your financial advisor before making any financial decision.
