TYPES OF CHEQUES
The cheque owner is responsible for withdrawing the Bearer Cheque.
These types of cheques are normally useful for a cash transaction.
Order cheque is the cheque that the payee will be withdrawing.
A crossed cheque is a cheque that is a mark to specify an instruction.
A common instruction is to specify that it must be deposit directly into an account with a bank.
The writer can protect the cheques from being stolen by crossing it.
Account Payee Cheque
Adding a crossing to a cheque increases its security.
In that, it cannot be cash at a bank counter but must be paid into an account in the same name.
which appears on the ‘payee’ line of the cheque.
If a holder issues a cheque to the payee which will not be withdrawing from the bank till three months, then that type of cheque is stale cheque.
Post Dated Cheque
If a holder issues a cheque to the payee for the upcoming withdrawing date, then these are the postdated cheque.
It is a medium of exchange that we can use in place of hard currency.
They can be deposited in any world currencies and are pre – printed.
People can use this on vacation in foreign countries without using cash.
The article on banking awareness 2017 will help you in gaining more knowledge. Make important notes on the banking and financial awareness which will help for better score in all exams.