Various Types of Cheques With Example


A cheque is an unconditional order toward the bank from the account holder to pay a certain sum of money as directed. Cheques can be classified into three broad categories on the basis of (i) Mode of Payment (ii) Mode of Payee and (iii) Mode of Period/ Time. 

(i) Mode of Payment: According to mode of payment cheques can be classified into two categories i.e. open and cross cheque. An open cheque is payable over the counter where is a cross cheque can not be paid over the counter. It will be paid through an account of the customer or to the banker. 

(ii) Mode of Payee: It can be classified into Bearer or Order. Anybody can be payee who is in legal possession of the cheque but order cheque cannot be paid to any other person other than pay or endorsee and is to give an introduction to the paying banker. 

(iii) Mode of Period/Time: A cheque can be antedated, postdated, and stale cheque when the cheque is presented to the bank for payment but the date previously mentioned of the cheque is termed as antedated cheque. But all antedated cheques are not valid for payment, antedated after six months is a stale cheque which cannot be paid without revalidation by the drawer. on the other hand when the cheque is presented for payment but the date mentioned in advance is termed as post-dated cheques. All post-dated cheques are valid but it will be payable when the date will come. 

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