Cheque

Payment services

The various products offered as a part of the payment service are:

                                Cheque

                                Payorder/Banker’s Cheque

                                Demand Draft (DD)

                                Multicity Cheque

                                Electronic Funds Transfer

                                Debit Card

                                Credit Card

                                Travel Card

we will discuss about cheque .

Cheque:

                A Cheque is a written instruction issued by a customer (drawer) to his bank (drawee) to pay a  specified amount to the person named (payee) in the cheque.

Cheque has following characteristics:

•    A cheque is a bill of exchange.
•    A cheque is always drawn on a banker.
•    A cheque is payable on demand.
•    A cheque is an unconditional order.
•    The amount of the cheque must be certain and specific.
•    A cheque must contain the name of person to whom the payment must be made.
•    The payment must be certain and it should not be ambiguous.                               

The following figure represents a specimen cheque .

Date----- Pay -----------------------------------------------------------           -----------------------------------------------------------------------------Or BEARER RUPEES---------------------------------------------------------------------------------------------                                                                                                           RS                                                                                                      THE NEW BANK                                                                    SIGNATURE ADDRESS

Features of Cheque:

Date: Cheque should have certain date. An Undated cheque cannot be paid.
A cheque which is post-dated cannot be paid because the authority to debit the     customer’s account is effective from the date of the cheque only. A cheque which is more than six months old is called a stale cheque and by banking practice such cheques are not paid.

Amount:   The amount in words and figures must be same.

Bearer or Order cheque:   A cheque may be payable to bearer.  If the word bearer cut off, then it is an order cheque. A bank will freely pay cash to the bearer, when it is bearer cheque. In case the word is cut off or the word order is inserted, the bank will ask for the identity of the bearer and only after satisfying about the identity, it will pay cash.

Alteration in a cheque:  If there are alterations, then such alterations should be authenticated under the complete signature of the drawer of that cheque.