Quick Answer: What Are The Uses Of Cheque?

What is Cheque and its uses?

A cheque is a document which ensures the payment of a particular amount of money on demand to a certain individual or to the bearer of the instrument.

It is a printed form which you can use to make payment from your bank account.

Your bank then pays the money to that individual (payee) from your account..

What is Cheques and its types?

In this article, we shall discuss in detail what is Cheque, various types of cheques that are issued in the Indian banking system and what are the features of each of them. … Crossed Cheque. Account Payee Cheque. Stale Cheque. Post Dated Cheque.

What are the two types of Cheque?

Types of Cheques: Know What are the Different Types of ChequesBearer Cheque.Order Cheque.Crossed Cheque.Open cheque.Post-Dated Cheque.Stale Cheque.Traveller’s Cheque.Self Cheque.More items…

What is crossing of Cheque and its types?

General Crossing – cheque bears across its face an addition of two parallel transverse lines. Special Crossing – cheque bears across its face an addition of the banker’s name. Restrictive Crossing – It directs the collecting banker that he needs to credit the amount of cheque only to the account of the payee.

What is the difference between check and Cheque?

Cheque and check appear in British English, and check appears in American English. In British English, cheque refers to a document used to pay from a person’s account. For other contexts, Brits usually use check.

How do Cheques work?

A bank cheque is a cheque drawn by a bank. When the cheque is presented, the funds are taken from the bank’s account and not from a customer’s account. Banks usually do not issue bank cheques unless they have first received the equivalent in cash from the customer.

What is the function of Cheque?

A cheque is an instrument issued by the drawer, directing the bank to provide cheque deposit services, to unconditionally pay a specific amount to the beneficiary or bearer upon presentation. By functions, cheques are divided into cash cheques and transfer cheques.

What is the purpose of a Cheque book?

A document in which the writer orders his/her bank to pay to the receiver of the check a stated amount of money.

What is Cheque in simple words?

A cheque, or check (American English; see spelling differences), is a document that orders a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued.

What are the three types of checks?

Check features include the date, the payee line, the amount of the check, the payor’s endorsement, and a memo line. Types of checks include certified checks, cashier’s checks, and payroll checks, also called paychecks.

How many types of Cheque are there?

4) 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.

Which is the fastest mode of payment?

Real Time Gross Settlements or RTGS, as it is commonly called, is one of the electronic modes of money transfer from one bank account to another, like NEFT. It entails a continuous or real-time settlement of payments on an individual order basis, without netting.

Why are Cheques important?

In view of the importance of cheques it is must that one should know what is a cheque and how it enables settlement of payments. While withdrawing money from the bank, making payment to someone you have to make use of cheques issued to you.

What are the characteristics of Cheque?

Features of a chequeA cheque should be in writing and properly signed by the drawer.A cheque contains an unconditional order.A cheque issued on a specified banker only.The amount specified is always certain and should be clearly mentioned both in figures and words.The payee of a cheque is always certain.More items…•

What is bearer Cheque?

What is a Bearer Cheque? A bearer cheque can be used to be payable as Cash or bearer with a specific name. … The cheque is payable over the counter to the bearer or the presenter of the cheque by the drawee bank. A bearer cheque can be transferred to another person.

What is called banker’s Cheque?

A banker’s cheque is also called a bank cheque of pay order and a demand draft is also called a sight draft as money can be withdrawn only after seeing the draft. … The banker’s cheque is issued to a bearer and anybody who bears the cheque can withdraw money.