Quick Answer: What Are The Features Of Cheque?

What are the different types of Cheques?

Based on these essentials, we explore the different types of cheques in India.Bearer Cheque.Order Cheque.Crossed Cheque.Open cheque.Post-Dated Cheque.Stale Cheque.Traveller’s Cheque.Self Cheque.More items….

What is the difference between check and Cheque?

Cheque and check appear in British English, and check appears in American English. In British English, cheque refers to a document used to pay from a person’s account. For other contexts, Brits usually use check.

What is bearer Cheque?

What is a Bearer Cheque? A bearer cheque can be used to be payable as Cash or bearer with a specific name. … The cheque is payable over the counter to the bearer or the presenter of the cheque by the drawee bank. A bearer cheque can be transferred to another person.

What are the functions of a Cheque?

A cheque, or check (American English; see spelling differences), is a document that orders a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued.

What are the features of negotiable instrument?

Features of Negotiable InstrumentsEasily Transferable: A negotiable instrument is easily and freely transferable. … Must be in Writing: All negotiable instruments must be in writing. … Time of Payment must be Certain: If the order is to pay when convenient then such an order is not a negotiable instrument.More items…

What is valid Cheque?

Validity: A cheque is normally valid for six months from the date it bears. Thereafter it is termed as stale cheque. A post-dated or antedated cheque will not be invalid. In both cases, the validity of the cheque is presumed to commence from the date mentioned on it.

Which is the fastest mode of payment?

Real Time Gross Settlements or RTGS, as it is commonly called, is one of the electronic modes of money transfer from one bank account to another, like NEFT. It entails a continuous or real-time settlement of payments on an individual order basis, without netting.

What is called banker’s Cheque?

A banker’s draft (also called a bank cheque, bank draft in Canada or, in the US, a teller’s check) is a cheque (or check) provided to a customer of a bank or acquired from a bank for remittance purposes, that is drawn by the bank, and drawn on another bank or payable through or at a bank.

What are the features of a check?

It is another way to instruct a bank to transfer funds from the payor’s account to the payee or that person’s account. Check features include the date, the payee line, the amount of the check, the payor’s endorsement, and a memo line.

What are the security features of a Cheque?

There are several security features embedded in the cheque, few of them are watermarks, logo, Serial number, account number, bank name and these features can be visible under normal or different light sources and instruments.

How do you pay a Cheque?

Cheque writing basicsWrite the name of the person or organisation you’re paying.Draw a line through any blank spaces on the cheque so people can’t add extra numbers or names.Add details (such as a reference or account number) to the payee line. … Keep the cheque stub that contains the details and reference.More items…