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All About Bank Cheques | Definition | Types | Advantages | Benefits | NEPAL



What is Cheque? 
 
Definition:

A Cheque is an instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument.

Cheques are a type of bill of exchange and were developed as a way to make payments without the need to carry large amounts of money.

Types of Cheques 
 
There are mainly three important types of cheques-
    •     Bearer Cheque
    •     Order cheque
    •     Cross Cheque
Bearer Cheque :
Bearer cheques are the cheques which withdrawn to the cheque's owner.

These types of cheques normally used for a cash transaction.

You can find this word on your cheque leaf, if you do not strike this word it becomes a bearer cheque. Means a person holding the cheque can withdraw the amount (only if it is signed).

Order Cheque :


Order cheques are the cheques which are withdrawn for the payee (the person whose name is written on the cheque). Before making payment to that payee, cross-checks check the identity of the payee.

Only persons name written on it can get the amount transferred to his account. In no condition can he withdraw cash. It is considered the safest kind of cheque, as we can find to which account the money has been transferred.

Cross Cheque : 
 
On the Crossed cheques, two lines are made on the top right of the cheque. Amount mentioned on the cheque is only transferred to the bank account of the payee.

No cash payment is made.

A bearer cheque becomes a crosses chque by crossing it twice with two parallel lines on the left hand top corner.


Account Payee Cheque :
 
On the Account payee cheque, two lines are made with the word "account payee" on the top right of the cheque.

Amount mentioned on the cheque is only transferred to the bank account of the payee whose name is mentioned on the cheque.

No cash payment is made. This cheque can not be endorsed to the third party.


Stale Cheque : 
 
If a cheque is not presented to the bank within 3 months from the date written on the cheque is known as a stale cheque.

Post dated Cheque :
 
If any cheque issued by a holder to the payee for the upcoming withdrawn date, then that type of cheques are called post-dated cheque.

Ante dated Cheque :

 
If date entered on the cheque is prior to the current date, that type of cheque is known as Ante-dated cheque.



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