Cheque and its types banking Awareness 2015 general awareness ga.As the IBPS PO and RRBs examinations are coming nearer, a lot of candidates who have been preparing for the examinations are seeking the study materials for the preparation. Here is some of the useful material which the candidates can use to prepare for the examination. Some of the terms are generally asked in the banking examinations and here are all of these to help the candidates in their examination and preparation. Cheque is the negotiable instruments which are issued by a person to another person which is paid by the drawer bank on the name of which the Cheque has been issued. Banks have the obligation to pay the amount mentioned on the Cheque to the bearer on which the Cheque has been issued. It is on the condition that the balance of the customer’s account issuing the check should be more than the amount mentioned over the Cheque.
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Cheques are of different types based on its use. Here we are discussing all the types of Cheques which are going to be asked in the exmiantion. RBI has implemented the negotiable instrument act and some of the bank instruments are under this. cheques are one of those instruments. Here are the complete details.
List of Cheques and their details
Bearer Cheque refer to a Cheque that is payable to whoever presents the Cheque, rather the person who issued the Cheque.
When a Cheque is not crossed, it is known as an “Open Cheque” or an “Uncrossed Cheque”. Such Cheques are obliged to be paid by the bank.
Crossing of Cheque means drawing two parallel lines on the face of the Cheque. A crossed Cheque cannot be encashed at the cash counter of a bank but it can only be credited to the payee’s account.
If a Cheque bears a date earlier than the date on which it is presented to the bank, it is called as “anti-dated Cheque”. Such a Cheque is valid up to three months from the date of the Cheque.
If a Cheque bears any date which has not yet come (future dated) then it is known as post-dated Cheque. A post dated Cheque cannot be honored earlier than the date on the Cheque.
If a Cheque is presented for payment after three months from the date of the Cheque it is called stale Cheque Bank generally dishonors a state Cheque.