Various Types of Cheques?
A cheque is an unconditional order addressed to a banker, signed by the person who has deposited money with a banker, requesting him to pay on demand a certain sum of money only to the order of the certain person or to the bearer of the instrument. TYPES OF CHEQUES- 1) Bearer Cheque Bearer cheques are the cheques which withdrawn to the cheque's owner. These types of cheques normally used for a cash transaction. For example - Ram has a savings account in HDFC bank. He brought a cheque from his chequebook to the HDFC bank branch where he has an account. He can present the cheque to the bank and withdraw money from his account. This type of cheque is known as Bearer Cheque. 2) Order Cheque Order cheques are the cheques which are withdrawn for the payee(the person whose name is written on the cheque). Before making payment to that payee,cross-checks check the identity of the payee. For example - Ram has a savings account in HDFC bank. He wanted to make payment of Rs.100,000 to Sham