- A cheque is an instrument in writing containing an unconditional order made by a depositor of a bank directing the banker to pay on demand a certain sum of money. Thus, the cheque is an instrument which is used to withdraw money from the bank and settle transactions.
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Jul 14, 2020 · A cheque is an instrument in writing containing an unconditional order made by a depositor of a bank directing the banker to pay on demand a certain sum of money. Thus, the cheque is an instrument which is used to withdraw money from the bank and settle transactions.
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...
The cheque is now a cancelled cheque. Cancelled cheques are placed in the account holder's file. The account holder can request a copy of a cancelled cheque as proof of a payment. This is known as the cheque clearing cycle. Cheques can be lost or go astray within the cycle, or be delayed if further verification is needed in the case of ...
A cheque is an unconditional order to the Bank by its customer (account holder) to pay a sum of money to a person named in the order, if the cheque is drawn (written) correctly. If such a cheque is...
Cheque. Definition: Cheque refers to a negotiable instrument that contains an unconditional order to the bank to pay a certain sum mentioned in the instrument, from the drawer’s account, to the person to whom it is issued, or to the order of the specified person or the bearer.
Dec 04, 2017 · Meaning of Cheque – Different Types of Cheque : Cheque is a negotiable instrument used to make payment in day to day business transaction minimizing the risk and possibility of loss. It is used by individuals, businesses, corporate and others to transact for making and receiving payment.
Jan 28, 2018 · THE FOLLOWING ARE THE PURPOSE OF A CHEQUE: It is always convenient to carry a cheque than carrying bulk cash to make payment to some body. When you make a payment through a cheque, the payment will be safe as the payment will be recorded in the books of the banker. Its copy will be recorded in the passbook of the drawer.
- Cheque is an instrument in writing. A cheque must be in writing. It can be written in ink pen, ball point pen, typed or even printed. Oral orders are not considered as cheques.
- Cheque contains an unconditional order. Every cheque contains an unconditional order issued by the customer to his bank. It does not contains a request for payment.
- Cheque is drawn by a customer on his bank. A cheque is always drawn on a specific bank mentioned therein. Cheque drawn by stranger are of no meaning. Cheque book facility is made available only to account holder who are supposed to maintain certain minimum balance in the account.
- Cheque must be signed by customer. A cheque must be signed by customer (Account holder) . Unsigned cheques or signed by persons other than customers are not regarded as cheque.
A cheque can be drawn up anytime. Some are negotiable and can be endorsed in favour of a third party. They can be post-dated. They can be traced if lost. Can be posted more cheaply. A customer is send a statement at the end of each month. Disadvantages of cheques. Cheques are not legal tender and other creditors may refuse to accept them.
Jan 20, 2016 · A cheque is a document which ensures the payment of a particular amount of money on demand to a certain individual or to the bearer of the instrument. It is a printed form which you can use to make payment from your bank account.