What is Bank Cheque?
Bank Cheque or Cheque is a writing order addressed to bank to pay on demand a certain sum of money to a person or to an account. A cheque is valid only upon signature of the owner of the bank account linked with the cheque.
Types of cheque:
What is a Bearer Cheque?
A bearer cheque is payable to the person whose name is specified on cheque or the person who present the cheque at the bank.
Example: Ajay owner of the bank account write a cheque on the name of Vishal. Now Vishal can cash the amount written on the cheque at the cash counter of Ajay’s bank.
What is Self Cheque?
A self cheque is issued by bank account holder to himself to withdraw money from his own bank account.
Example: Puneet own the bank account write a cheque for self to physically collect money from his own account.
What is Account Payee Cheque?
Account payee cheque is also called crossed cheque. These cheques cannot be encashed at bank’s cash counter like self or bearer cheque. An account payee cheque can be only credited to payee’s bank account.
Example: Versha write a crossed cheque for Ahuja Store for the purchase of grocery. Amount written on the cheque will be transferred from Versha’s bank account to Ahuja Store’s bank account.
What is an Ante-Dated Cheque?
An Ante-dated cheque is a cheque which was filled and signed on any past day and now presented at the bank. Most cheque have validity of 3 months.
Example: Salary cheque is given to Anu on 1st of Month but Anu present the cheque at bank’s cash counter on 10th of Month.
What is a Post-Dated Cheque?
A post dated cheque is a cheque which bears a date which is yet to come is called post-dated cheque. This cheque cannot be honored before the date specified on it.
Example: Vivek write 12 post-dated cheque on the name of Insurance company with date written, 1st of each month. Bank will honour each cheque on the the date written on cheque.
What is Stale Cheque?
A stale cheque is cheque which is presented at bank after 3 months of the date specified on the cheque. Bank will not honour a stale cheque.
Example: Kavish got a cheque with date specified 2nd March but present that cheque in bank in month of September. Bank will not honour that cheque as it is stale cheque.