In the last story ” Banking Awareness Study Material : Exchange Rates “, We learned about different exchange rates like CRR and SLR. In today’s story I want to throw some light on various type of cheques. This topic can not be ignored from exam perspective. In SBI PO main exam 2017, a question from post dated cheque had appeared. Banking Awareness Study Material is a try to provide students a solid basics for banking and its operations.
What is a Cheque ?
A Cheque is a negotiable instrument which instructs a bank to pay specified amount to the payee from his transactional account. The person who is issuing the cheque is called ” Drawer ” and the person with whose name the cheque is issued is called ” Payee “. Suppose if a person has issued a cheque of rs 1000 in the name of Mohan Kumar. Mohan Kumar can carry the cheque and the bank will give him the cash amount of Rs 1000.
Let us try to understand the different parts of a cheque .
- Drawee is the name of the bank
- Drawer is the person who is issuing the cheque.
- Payee is the person in whose name the cheque has been issued.
- MICR is the Magnetic Ink Character recognition which holds information about Banks.
Type of Cheques
1. Bearer Cheque – A which is payable to the presenter of the cheque is called Bearer Cheque. No identification is required to receive the money from the bank.
2. Order Cheque – A cheque which is payable to the person whose name is written in the Payee column is called Order Cheque. The bank ask for the person’s identity before giving money. In order to make a cheque order cheque, the bearer word is cut.
3. Crossed Cheque – A cheque which has two parallel lines marked on the face of it is called Crossed Cheque. The Crossed Cheque let banks to transfer amount in the bearer’s Account.
4. Account Payee Cheque – A cheque in which the word ‘account payee’ is written between two parallel lines marked on the face of it is called Account Payee Cheque. By issuing these type of cheque, bank ensures that the amount will be transferred to the Payee’s Account. It is very secured compared to other form of cheques.
5. Company Crossed Cheque – When the word ‘ Company ‘ is mentioned in between the parallel lines marked on the face of the cheque called Company Crossed Cheque. Normally crossed cheque and company crossed cheque are same.
6. Stale Cheque – When any cheque which issued to the person is not withdrawn for three months, the cheque is called stale cheque.
7. Post Dated Cheque – When the cheque issued by holder to the payee bears a date after date of issue, it is called post dated cheque. For ex – if your cheque’s date is 10th Nov, 2017 and you are going to bank on 9th Nov, 2017 asking for money. They will ask you to come on or after 10th Nov, 2017. Bank does not accepts post dated cheques. I got one question from this topic on SBI PO mains exam.
8.Anti Dated Cheque – A cheque which bears a date which is before date of issue is called anti dated cheque. Ex- If you have a cheque dated at 10th Nov , 2017 and you are going on 11th Nov, 2017, your cheque will be called anti dated cheque. The maximum period is 3 months when you can withdraw money using Anti Dated Cheque.
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