Usually, the banks take 1-2 business days to process and clear the cheque payment. The time may increase depending on the day of the week since it is a manual clearing process. For specific reasons, the bank may also ask you to enter your account name and number at the back of the cheque leaf. • Mobile app – Like net banking, you can also use your mobile banking app to apply for a new chequebook. The process is similar to net banking and consumes hardly a couple of minutes.

Counterfeiting:

1. A Prepaid Check is a Check Type available when entering invoices in Accounts Payable to stipulate the form of payment to the vendor.
2. The cheque number is followed by a MICR number and a portion of the account number with which the account number is linked.
3. The contents of this article/infographic/picture/video are meant solely for information purposes.
4. It is always issued in favor of other parties, there may also be third parties and it is an order for the bank to pay the person whose name the cheque bears or is in favor of.
5. These include bearer cheques, order cheques, crossed cheques, account payee cheques, post-dated cheques, stale cheques, and more.

However, this should be done with caution as the issuing bank may charge additional fees for issuing a new cheque. This is the individual whose name appears on the cheque and who receives payment in the amount specified therein. The drawer and payee may, in some circumstances (such as when the drawer makes a self-cheque), be the same person. • If the date is missing on the cheque leaf, including mandatory details such as the beneficiaries name, issuer’s sign and more, a cheque may be rejected. Yes, a cheque can be used instead of cash payment if the merchant or the shop accepts cheque payments.

General crossing

To ensure that the amount is still available whenever the cheque is cashed or deposited, the teller will earmark the amount on a certified cheque. Banks take utmost care when processing cheque transactions for security reasons. So, individuals must be cautious when filling out details. The following are the important things to keep in mind while writing a cheque. • Digital money transfer methods are becoming popular since cheques are a bit time-consuming to process payments.

Types of Cheques

1. In general crossing cheques, there is the presence of two parallel lines present on the top corner of the document.
2. Enabling businesses to sense, learn, respond, and evolve like living organisms will be imperative for business excellence.
3. A traveler’s cheque is used when traveling in order to avoid carrying large amounts of cash so as to maintain greater safety and security.
4. Later, navigate to the services section, choose the ‘issue a new chequebook’ option and proceed as instructed.
5. It acts as an instruction to the bank (drawee) on how the cheque should be managed.
6. In this case, the collecting bank has to credit the amount of the cheque in the payee’s bank account only.

Where the line of crossing has the name of a specific banker, then the payment can be obtained only by the said bank whose name is written between the crossing of lines. The drawing types of cheque in india of two parallel lines is not necessary in the case of a specially crossed cheque. The object of special crossing is to direct the drawee banker to pay the cheque only if it is presented through the particular bank mentioned therein. Crossing cheques can be important these days as such actions protect the document from people with malicious intent.

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In this article, we will learn about the “Type of cheques in the banking system in India”. To put it in simple words, a cheque is nothing but a written bill of exchange that is written by a bank account holder to pay for goods or services. It is always issued in favor of other parties, there may also be third parties and it is an order for the bank to pay the person whose name the cheque bears or is in favor of. In generally crossed cheque, two parallel lines are drawn on the cheque, either on the sides or across the entire cheque. This means that the money can be deposited only into the payee’s bank account.

A crossed cheque is a type of cheque where the issuer makes two slanted parallel lines on the top left corner of the cheque, with the word ‘a/c payee’ written. It means that the specified sum of the cheque, regardless of who is handing it over, will only be transferred to the individual/organisation whose name is mentioned as the payee. A crossed cheque is also safer because it can be cashed only at the payee’s bank.

On the other hand, parties must usually deposit crossed cheques into their own banks or the bank specified within a special crossing. When the cheque has “A/c Payee” written between the crossed lines and “A/c Payee” is added to a case of general or special crossing then it is Restrictive crossing. In this case, the collecting bank has to credit the amount of the cheque in the payee’s bank account only.

Unlike uncrossed cheques that can be cashed over the counter, crossed cheques can only be deposited into a bank account. This significantly reduces the risk of someone misusing a lost or stolen cheque. An account payee cheque is a bearer’s cheque that has the words ‘’account payee’’ written on the top left-hand side, within two parallel lines, and crossed twice.

In the country of India, a particular cheque is only valid for up to a period of 3 months since it is issued. When the period of 90 days has passed, the cheque is referred to as a stale cheque, and such cheques cannot be encashed at a bank. You can instruct a bank to move funds from one account to another by writing a cheque.

• Cheques are issued only to account holders, so anyone who wishes to use cheques first must open a bank account. It is used by the issuer to withdraw money from their bank account. A stale cheque has already passed its validity date and can no longer be cashed. Currently, a cheque is considered valid until three months from its issued date.