Bank Cheques Types: We all use cheques. Usually cheques are used to give money to someone or to make a big payment. Do you know how many types of cheques are there? If not, then we are telling you.
Bank Cheques Types: Usually banks issue cheque books to savings account holders. Cheques are issued by the bank to both current account holders and savings account holders. In this era of UPI and digital transactions, the importance of cheques has not ended. Therefore, people prefer to use cheques in big transactions. Cheques are considered as a proof in transactions. You too must have given money to someone through cheque many times. Do you know that there are 9 types of bank cheques? Let us know where and when which cheque is used.
1. Bearer cheque
Bearer cheque is a cheque which can be encashed by the person whose name is on the cheque. Bearer cheque is also called ‘Payable to Bearer’ cheque.
2. Order cheque
An order cheque is a cheque that has “or to order” written after the name of the payee. It is also called a “payable to order” cheque.
3. Crossed cheque
In a crossed cheque, the cheque issuer makes two parallel lines at the top of the corner of the cheque by writing “a/c payee” or not. This ensures that no matter who presents the cheque at the issuer’s bank, the transaction will take place in the account of the person named in the cheque. The advantage of a crossed cheque is that it reduces the risk of money being paid to an unauthorised person.
4. Open cheque
An open cheque is also sometimes called an uncrossed cheque. Any cheque that is not crossed falls under the open cheque category. This cheque can be presented at the drawer’s bank and is payable to the person who presents it.
5. Post-dated cheque
A cheque bearing a date later than the date of actual issue is called a post-dated cheque. This cheque can be presented to the drawer bank any time after it is issued, but funds are not transferred from the payee’s account until the date mentioned on the cheque.
6. Stale cheque
This is a cheque whose validity period has expired and cannot be encashed now. Initially, this period was six months from the date of issue. Now this period has been reduced to three months.
7. Traveller’s cheque
This can be considered equivalent to universally accepted currency. Traveller’s cheque is available almost everywhere and comes in various denominations. It is a cheque issued by the bank to make payments from one place to another. Traveller’s cheque has no expiry date and can be used during your next trip as well. You also have the option of encashing it after you return from your trip.
8. Self Cheque
When a person issues a cheque usually to himself it is called a self-cheque. It has the word “self” written in the name column. A self-cheque is drawn when the drawer wants to withdraw money in cash from the bank for his own use.
9. Bankers Cheque
A bankers cheque is a cheque issued by a bank on behalf of the account holder to another person in the same city with an order to pay a specified amount.
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