What is a Cheque ? Different Types Of Cheque

What is a Cheque ? Meaning
Cheque is an important negotiable instrument which can be transferred by mere hand delivery. Cheque is used to make safe and convenient payment. It is less risky and the danger of loss is minimised.

Definition of a Cheque
"Cheque is an instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument."

Different Kinds / Types of Cheques

1. Order Cheque : A cheque which is payable to a particular person or his order is called an order cheque.

2. Bearer Cheque : A cheque which is payable to a person whosoever bears, is called bearer cheque.

3. Blank Cheque : A cheque on which the drawer puts his signature and leaves all other columns blank is called a blank cheque.

4. Stale Cheque : The cheque which is more than three months old is a stale cheque.

5. Mutilated Cheque : If a cheque is torn or broken , it is termed as mutilated cheque.

6. Post Dated Cheque : If a cheque bears a date later than the present date, it is termed as post dated cheque.

7. Open Cheque : A cheque which has not been crossed is called an open cheque.

8. Crossed Cheque : A cheque which carries two parallel lines across the face of the cheque , is called crossed cheque.