Cheque

A cheque is a bill of exchange in which one party (Drawee) is a Bank. So a Drawer (account Holder) draws the Cheque on the (Drawee bank) in the name of a Payee

OR

A cheque is a Bill of Exchange drawn on a specified banker and not expressed to be payable otherwise then on demand and it includes the electronic Image of a truncated cheque & a cheque in the electronic form also.

Account payee cheque: Account payee cheques can be routed only through accounts.

Post dated cheque: The date on the cheque beyond today’s date then cheque becomes post dated.

Stale cheque: Cheque is valid for 3 months. If the date on the cheque is before 3 months, then the cheque becomes stale cheque.

Mutilated cheque: It is a damaged cheque. At Par cheque: It is payable anywhere in India. Multi city cheque: A cheque which is payable in any branch of a particular bank.

Crossing on Cheque: Two parallel lines drawn on the top left corner of the cheque.

a.       General Crossing: Where a cheque bears across its face an addition to the words “and company” or any  abbreviation thereof, between two parallel transverse line, or of two parallel transverse  lines simply, either with or without the words  “not negotiable”, that addition shall be deemed a crossing , and the cheques shall be deemed to be crossed generally.

b.      Special Crossing: Where a cheque bears across its face an addition of the name of a banker either with or without the words “not negotiable”, that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed specially and to be crossed to that banker