An individual impersonating the cheque owner’s sign is considered an offender under the law. Endorsee – The endorsee is the party to whom the payment rights are passed from the payee (the endorser). Every cheque carries a unique 6-digit number inscribed on the bottom of the cheque leaf. This number is known as the cheque number, and it is used to identify the status of the cheque. The cheque number is followed by a MICR number and a portion of the account number with which the account number is linked.
A self-cheque is written by the account holder to withdraw money personally from their own account at their bank branch. A bearer cheque or open cheque is a cheque in which the individual bearing/carrying his/her name on the cheque can receive the payment. The bank will not ask for any authorization from the issuer while allowing the payment to the person who will carry the cheque to the bank.
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Currently, a cheque is considered valid until three months from its issued date. It is a type of crossed or accounts payee cheque but it is post-dated to meet the obligation at a future date. Foreigners on vacations carry traveller’s cheques instead of carrying hard cash, which can be cumbersome. These cheques are issued to them by one bank and can be encashed in the form of currency at a bank located in another location or country. Traveller’s cheques do not expire and can be used for future trips.
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Even if it is transferred, the person receiving the cheque does not have any greater right to the funds than the previous holder. This limits the possibility of fraud or unauthorised transfer, as the cheque can only be deposited into the bank account of the person whose name is on the cheque. Cheques have long been a staple in the world of finance, offering a secure way to make payments.
- Your bank then pays the money to that individual (payee) from your account.
- Banker’s cheques are issued by a bank on behalf of the account holder to transfer a specified amount to a payee within the same city.
- These Terms of Use and any notices or other communications regarding the Facilities may be provided to you electronically, and you agree to receive communications from the Website in electronic form.
- Each type serves different payment needs, and your cheque number is one way to identify and track them once issued.
- Further, the Facilities Provider cannot always foresee or anticipate technical or other difficulties.
Your personal financial situation is unique, and any information and advice obtained through the facilities may not be appropriate for your situation. For more details, please also refer to the Legal Disclaimers provided on the Website. The payer requests their bank to verify sufficient funds before marking the cheque as certified. This process protects the payee against bouncing, making certified cheques ideal for large transactions like real estate purchases. Personal cheques are widely used in India for everyday financial transactions.
Ante Dated Cheque
Individuals and organisations can use different types of cheque books based on their unique needs. The most common include personal cheque book, business cheque book, and customised cheque book. Now the crucial thing to remember is that this kind of cheque cannot be encashed or deposited before the date mentioned.
Cheque payment includes multiple parties, and the payment processing takes place in chronological order. • Bank branch – Alternatively, you can visit the bank branch during active hours and apply for a new chequebook. Applying for a new chequebook has now become convenient as you can get it through various online and offline channels. • With a unique number assigned to every cheque leaf, they are easier to track down if lost.
It is very important to understand the reasons for the dishonor of cheques because it is considered a criminal offense and is punishable by imprisonment up to two years or with a monetary penalty or with both. This policy is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). The Website specifically prohibits you from usage of any of its facilities in any countries or jurisdictions that do not corroborate to all stipulations of these Terms of Use. In case of any dispute, either judicial or quasi-judicial, the same will be subject to the laws of India, with the courts in Mumbai having exclusive jurisdiction. Either party can terminate this Agreement by notifying the other party in writing.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Usually, the banks take 1-2 business days types of cheque in india to process and clear the cheque payment.
The amount shall be transferred directly to the payee’s account number. A cheque is a piece of document/paper which orders the bank to transfer money from the bank account of an individual or an organisation to another bank account. A blank cheque, as the name suggests, is a cheque that has no details filled in except the signature of the issuer.
Number of Parties involved with a Cheque
- Each type serves a unique purpose, catering to various needs and situations.
- Understanding personal cheques facilitates informed financial decisions, allowing users to manage transactions efficiently and securely.
- This process generally protects the payee from the risk of bounced cheques.
- An open cheque does not have crossed lines, and hence, is also called an uncrossed cheque.
- Different types of checks are available to meet the needs and purposes of the customers.
The said additional terms and conditions, if prescribed, would be specific to the corresponding Promotional Offer only and shall prevail over these Terms of Use, to the extent they may be in conflict with these Terms of Use. The Website reserves the right to withdraw, discontinue, modify, extend and suspend the Promotional Offer(s) and the terms governing it, at its sole discretion. The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product.
Parties to cheque
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Two parallel transverse lines are required for this type of cheque crossing. There is no requirement to draw these parallel lines on a specific area of the cheque; they can be drawn anywhere. The benefit of this crossing is that the cheque must essentially be paid to the bank. Foreigners, for convenience, carry what is known as a traveller’s cheque. Here, the cheque issued by the payee’s bank can be encashed at any local bank in a foreign country. This avoids the need to carry large amounts of cash when travelling abroad.
Further this limited license terminates automatically, without notice to you, if you breach any of these Terms of Use. Upon termination, you must immediately destroy any downloaded and printed Materials. Asad specializes in penning and overseeing blogs on study strategies, exam techniques, and key strategies for SSC, banking, regulatory body, engineering, and other competitive exams. During his 3+ years’ stint at PracticeMock, he has helped thousands of aspirants gain the confidence to achieve top results. In his free time, he either transforms into a sleep lover, devours books, or becomes an outdoor enthusiast.
