Learn what a cheque is, different types of cheques in banks and their importance in the financial environment. Explore 9 types of cheques in banking like Bearer cheque , Order cheque , Crossed cheque , Open Cheque , & more. What is a Cheque ? A cheque is a written order instructing a bank to pay a specified sum of money from the drawer’s account to the payee named on the cheque . It is a negotiable instrument under the Negotiable Instruments Act, of 1881, meaning it can be transferred to others. The person writing the cheque , known as the drawer, must have sufficient funds in their account to cover the amount stated on the cheque . The bank , referred to as the drawee, is responsible for honouring the cheque and ... There are numerous types of bank cheques . The first question that may come to one’s mind is: why? why the need for many different types of bank cheques ? It is simply because the regular cheque (or order cheque ) does not fit in all situations as we will see below. Some types of bank cheques were […] A cheque is a document that orders a bank to pay money from a person's account to the payee. Learn about the origins, evolution, and features of cheques, as well as the differences in spelling and usage across countries.
