0
What is a Cheque?
A cheque is a negotiable instrument that can be issued by one person to pay money to another person/entity. The person to whom the cheque is issued is entitled to receive the sum mentioned in the cheque (provided the account has sufficient balance) from the bank where the cheque issuer holds his account.
What are the important things to note while writing a cheque?
There are a number of important things that we must keep in mind while writing a cheque. They are elaborated below.
1. Remember to Cross the Cheque
Crossing a cheque means putting two parallel lines on the left hand top corner of the cheque. This means that, the cheque is a Account Payee cheque which means it can only be deposited into another account and cannot be exchanged for cash over the counter. This serves two purposes - you can keep a track of who encashed your cheque and also ensure that even if the cheque is lost, it cannot be misused by anyone. The person to whom the cheque was paid will be recorded.
2. Write the Name of the person to whom the cheque is to be paid in full
It is very important to state the cheque payee's name in full without missing any part of the name in the "pay to line" The name entered here should match the name under which the person holds a valid bank account. If there is any mismatch or spelling mistake the cheque will not be paid
3. Write the amount to be paid both in numbers and words
It is advisable to write both the number value as well as value in words in the cheque. Also care must be taken to ensure that there are no leading or trailing blank spaces while entering these values which might cause tampering of the cheque and modification of the cheque value
4. Write the cheque date promptly
Do not issue cheques that do not have a cheque issue date.
5. Sign the cheque at the bottom right hand corner with the exact signature that is registered with the bank records.
If there is even a slight mismatch between the signature in the bank records and that in the cheque the bank will not release the payment.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Can you issue blank cheques?
The answer is a BIG NO. DO NOT issue cheques to anyone that does not contain a cheque value.
What is bank check book?
A check/cheque book is a collection of cheque's. These cheques can be used to make payments to anyone. They are as good as cash (Provided there is cash in the cheque drawers account)
What is a check book?
A cheque book is booklet of cheque leaves or in simple terms a booklet of individual cheques. These cheques can be used by the customer who owns them to pay other people. The customer will sign on his cheque and fill-up the amount and give to people who he has to pay like his grocery bill or his telephone bill.
What is outward clearing check?
Cheques deposited in the bank for credit to their accounts, drawn on a bank other than that of the collecting bank,i.e., not a transfer cheque. Cheques are bound outward to the payee/ drawee bank (the bank that is making the payment/ on whom the cheque is drawn). Example: A cheque drawn on "Bank of America" deposited in "Chase Manhattan Bank ", is an outward cheque for Chase and is an inward cheque for Bank of America.Outward cheques could beLocal cheques (within the same geographical/ clearing zone),Outstation cheques (drawn on a bank outside the local clearing zone) orForeign cheques (drawn on a bank/ location outside the country of the collecting bank).
What are the disadvantages of paying cheques?
Some disadvantages are:You may lose the cheque or it might be stolenThe cheque issuer may not have sufficient balance in his acc to honor the cheque
Which one is correct cheque leaf or cheque leaves?
Both are correct. If a single cheque is used it is called a cheque leaf. If a number of Cheques are used, collectively they are called cheque leaves or a cheque book or a booklet of Cheques. They all refer to one and the same. The difference is just the number of Cheques under consideration.
What is cheque book?
a cheque book is a collection of individual cheque leaf's. it may have 10 or 20 or even 50 cheques you can use these cheques to withdraw cash or make payments to others.
Who can cross the cheques?
The person issuing the cheque
Can you issue blank cheques?
The answer is a BIG NO. DO NOT issue cheques to anyone that does not contain a cheque value.
What is bank check book?
A check/cheque book is a collection of cheque's. These cheques can be used to make payments to anyone. They are as good as cash (Provided there is cash in the cheque drawers account)
What is a check book?
A cheque book is booklet of cheque leaves or in simple terms a booklet of individual cheques. These cheques can be used by the customer who owns them to pay other people. The customer will sign on his cheque and fill-up the amount and give to people who he has to pay like his grocery bill or his telephone bill.
What is Check book?
A cheque book is booklet of cheque leaves or in simple terms a booklet of individual cheques. These cheques can be used by the customer who owns them to pay other people. The customer will sign on his cheque and fill-up the amount and give to people who he has to pay like his grocery bill or his telephone bill.
Types of cheques in India?
Based on the location cheques are classified as 1. Local & 2. Outstation cheques Based on its value they are classified as 1. Normal & 2. High Value cheques Cheques r mainly of four types 1)open 2)bearer 3)order 4)crossed 1) open cheques r those which r paid across the bank counter 2) bearer cheque are to be paid to the bearer of the cheque 3) order cheque is to be paid to the payee in person 4) crossed cheque to be paid to the payee's account on submission
How long is a personal check good for?
Most banks will accept them up to 6 months past the date on the cheque. Governemnt cheques, cashiers cheques, and certified cheques do not staledate, unless the cheque specificly states otherwise.
What is outward clearing check?
Cheques deposited in the bank for credit to their accounts, drawn on a bank other than that of the collecting bank,i.e., not a transfer cheque. Cheques are bound outward to the payee/ drawee bank (the bank that is making the payment/ on whom the cheque is drawn). Example: A cheque drawn on "Bank of America" deposited in "Chase Manhattan Bank ", is an outward cheque for Chase and is an inward cheque for Bank of America.Outward cheques could beLocal cheques (within the same geographical/ clearing zone),Outstation cheques (drawn on a bank outside the local clearing zone) orForeign cheques (drawn on a bank/ location outside the country of the collecting bank).
What are functions of a 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 fullform of lbd cheques?
Local Bill discount cheque.
