This is also called a ‘'crossed cheque’'. Account Payee ChequesĪn account payee cheque is a bearer’s cheque that has the words ‘'account payee’' written on the top left-hand side, within two parallel lines, and crossed twice. It has to be kept in mind that if such a cheque falls in the wrong hands, it can easily be used by another person to withdraw money from the bank from which the cheque is issued, so a self-cheque should be kept safely. A self-cheque is for use in situations when you want to withdraw money from your own account in cash. It can only be encashed in the drawer’s bank. You would write the word ‘'self’' in the space for the drawee’s name on the cheque. Self-ChequesĪ self-cheque is a cheque drawn in one’s own name, which means the drawer and the payee are the same. Depending on the bank process, it may take a few days for the money to reflect in your account to be withdrawn.Ĭashing a cheque: This is being offered the cash in hand. The differences between depositing and cashing a cheque is as given below:ĭepositing a cheque: Adding a specified amount to your bank account through the cheque. In the leaf, it is a must to include the word ‘bearer’ to process this type of cheque. In a bearer cheque, the payment is made to someone who is acting on behalf of the payee/beneficiary, in whose favor the cheque has been issued. It is also possible for the holder to issue this cheque to someone else. Sign clearly and always use the same signatureĪn open cheque is a type of leaf that a holder can use to get payment at a bank or deposit in his own account.Never leave any column blank on a cheque.Remember never to leave any kind of space between number or words on the leaf.Step 3: And then write it in numbers followed by this symbol ‘/-.’ Proceed to write the amount in words and add ‘only’ in the end, Step 2: Write the date and write the name of the payee in the ‘Pay’ column. Step 1: The first step is to cross a cheque, which means to draw two lines, which are parallel to each other, on the left hand corner of the document. A cheque will be considered invalid if does not contain the date.It is an instrument that is payable on demand.The payment will only be made in the name of the payee/beneficiary.The payee of a cheque is fixed and certain and cannot be changed.A cheque is always drawn on a specified banker.Cheques can be issued against savings or current accounts. The first six numbers that are present on the bottom of the cheque is the cheque number. The identity of the cheque can be found only with the help of the cheque number. In case you wish to track the status of the cheque, you will need to provide the cheque number. It is always issued in favor of other parties, there may also be third parties and it is an order for the bank to pay the person whose name the cheque bears or is in favor of. To put it in simple words, a cheque is nothing but a written bill of exchange that is written by a bank account holder to pay for goods or services.
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