This type of issuing a cheque is also called bearer type cheque also known as open cheque or uncrossed cheque. Different types of cheques in the indian financial system. Learn about the cheque, purpose it serves and types of cheques used in banking system of india like bearer cheque, self cheque etc. It has to be revalidated before presenting to the bank. Here are different types of cheque which you may come across. For example ram has a savings account in hdfc bank. Types of cheques pdf file download link provided below. If you have a savings bank account or current account in a bank, you can issue a cheque in your own name or in favor of others, thereby directing. The recipient of the cheque is known as payee frequently asked in exam cheque types. Cheque is an important negotiable instrument which can be. Uncrossed cheque open cheque may be a bearer cheque or an order cheque.
We look at joshs complaint when his bank wrongly bounced a cheque he sent to one of his main suppliers. This is a cheque on which the word bearer is not cancelled. In 1830 the bank of england introduced books of 50, 100, and 200 forms and counterparts, bound or stitched. The cheque can be cashed at a bank branch without requiring any official. Find out how we deal with complaints about cheques and bankers drafts. These types of cheques normally used for a cash transaction. This cheque can be cashed at the drawee bank s cash counter. What is a cheque definition, types of cheques and features.
In this article, we will discussing about one of the widely used negotiable instrument cheque and will also discuss the different types of it. Types of cheques pdf file download banking awareness topic. A cheque which is payable to a particular person or his order is called an order cheque. A cheque is called bearer cheque when the bearer written on the right of the cheque is not canceled or marked. Bearer cheques are the cheques which withdrawn to the cheques owner. Cheque have become important part of the bank where large and bulk transactions for the industries and institutions takes place through cheques. Types of cheque pdf download banking awareness gk babaji. An order cheque can be paid to the named payee across the banks account if so presented. The person writing the cheque, the drawer, usually has an account where their money was previously deposited. The cheque is negotiable from the date of issue to three months.
Such cheques are issued by the bank itself and gaurantees a payment. A cheque must be drawn upon a specified bank drawee frequently asked in exam a cheque must have the name of the recipient of the cheque. So we are gonna make you clearly understand the topic so that you will not have any doubts in the near future. A cheque, or check is a document that orders a bank to pay a specific amount of money from a. Crossing of cheque crossing of cheque and its different. Such cheque is payable by the drawee bank over the counter to the bearer or presenter of the cheque. Cheque types pdf download short note for ibps, bba, mba, llb. What are the different types of cheques read and digest. The issued cheque turns stale after the completion of three months. A cheque is a document that orders a payment of money from a bank account.
In this video i am explaining cheques and it types in detail. It very important for banking awareness that comes in various competitive exams like bank po ssc etc. Bank deposits consist of money placed into banking institutions for safekeeping. These deposits are made to deposit accounts such as savings accounts. This post will provide you information about various types of cheques. A cheque is an unconditional order addressed to a banker, signed by the depositor, requesting him to pay on demand a certain sum of money only to. The drawer writes the various details including the monetary amount, date, and a payee on the cheque, and signs it, ordering their bank, known as the drawee, to pay that person or company the.