Thursday, 27 March 2014

What is Cheque

Cheque is a negotiable instrument containing conditional order to pay sum of money to the person mentioned on it or to the bearer of the instrument.

Crossing on Cheque: Two parallel lines drawn on the top left corner of the cheque.

Account payee cheque: Account payee cheques can be routed only through accounts.

Post dated cheque: The date on the cheque beyond today’s date then cheque becomes post dated.

Stale cheque: Cheque is valid for 3 months. If the date on the cheque is before 3 months, then the cheque becomes stale cheque.

Mutilated cheque: It is a damaged cheque.

At Par cheque: It is payable anywhere in India.

Multi city cheque: A cheque which is payable in any branch of a particular bank.

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