This document defines and provides examples of different types of cheques:
1. Bearer cheques can be cashed by anyone holding the cheque, while order cheques must be deposited into the payee's account. Crossed cheques and account payee cheques can only be deposited, not cashed.
2. A stale cheque is one that is over 3 months old. An ante-dated cheque has a date written prior to the current date. A self cheque can be cashed or deposited by the account holder.
3. Blank cheques and travelers cheques provide additional forms of payment, while gift cheques are decorative cheques given as presents.
5. Cheque
Open Cheque
Bearer Cheque Order Cheque
Crossed
Cheque
General
Crossing
Special
Crossing
Restrictive
Crossing
Not
Negotiable
Crossing
6. Bearer Cheque
• Bearer cheques are the cheques which
withdrawn to the cheque's owner. These types of
cheques normally used for a cash transaction.
For example - Ram has a savings account in HDFC
bank. He brought a cheque from his chequebook
to the HDFC bank branch where he has an
account. He can present the cheque to the bank
and withdraw money from his account. This type
of cheque is known as Bearer Cheque.
7.
8. 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Order cheques are the cheques which are withdrawn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.
For example - Ram has a savings account in HDFC bank.
He wanted to make payment of Rs.100,000 to Sham.
Ram gave a cheque to Sham, writing his name on the
cheque. Sham will present the cheque to HDFC bank
and he will get the cash.
9.
10. Crossed 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.
11.
12. 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.
13.
14. Stale Cheque
• In India, 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.
15.
16. Ante Dated Cheque
• If date entered on the cheque is prior to the
current date, that type of cheque is known as
Anti-dated cheque.
• For example - On 10 January 2019, Ram
issued a cheque to Sham. Date written on the
cheque is 10 December 2018.
17.
18.
19. Self Cheque
Example
• The Cheque in which ‘self’ is written at the
name of payee is known as Self Cheque. A
person can withdraw money from his own
account using self cheque. Such type of
Cheque should not be crossed and ‘or bearer’
not to be stricken off. Any person either you or
anyone else can withdraw the money using
self cheque.
20.
21. Blank Cheque
• Blank Cheque is a cheque which is only signed
but payee name, amount and date is not
written. Such cheques are risky, must be kept
in safe custody. As in case if blank cheque lost,
anyone who find may write any amount and
withdraw money from your account
fraudulently.
23. Travellers Cheque
• A travellers cheque is a cheque issued by
bank or financial institution that can be used
as form of payment. It is used for making
payment in foreign country, after being
endorsed by signature of the holder. Travelers
cheques are issued in various monetary
denominations – USD, EURO, Japanese Yen,
CAD, AUD etc.
24. Gift Cheque
• Cheque issued in decorative form for a fee by
banks for customer who want to use for the
purpose of gifts or prize on special occasion.
They are usually large in size. Cheque includes
both electronic image of a truncated cheque
and a cheque in electronic mode.
