{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/savings-account\/what-are-the-different-types-of-cheques\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/savings-account\/what-are-the-different-types-of-cheques\/","headline":"What are the Different Types of Cheques?","name":"What are the Different Types of Cheques?","description":"Cheques offer a plethora of options that meet several requirements of users. Various cheques are available for different purposes, ranging from bearer cheques to traveller\u2019s cheques. This comprehensive guide explains the different types of cheques, their basic features, their validity, and the intricacies of using them.  What is a Cheque?  A cheque is a negotiable...","datePublished":"2024-05-24","dateModified":"2024-11-15","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/vinayak\/#Person","name":"Vinayak","url":"https:\/\/www.indusind.com\/iblogs\/author\/vinayak\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/83880c90630f0d98ec7d461acb74bdf6?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/83880c90630f0d98ec7d461acb74bdf6?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/What-are-the-different-types-of-cheque-min-1.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/What-are-the-different-types-of-cheque-min-1.jpg","height":320,"width":848},"url":"https:\/\/www.indusind.com\/iblogs\/savings-account\/what-are-the-different-types-of-cheques\/","about":["Savings Account"],"wordCount":1154,"keywords":["Savings account"],"articleBody":"Cheques offer a plethora of options that meet several requirements of users. Various cheques are available for different purposes, ranging from bearer cheques to traveller\u2019s cheques. This comprehensive guide explains the different types of cheques, their basic features, their validity, and the intricacies of using them. What is a Cheque? A cheque is a negotiable instrument and a vital tool for financial transactions. It is a written directive from the drawer to the bank, ordering the transfer of a specific amount into the payee account. A cheque is a bill of exchange and falls within the legal framework of the Negotiable Instruments Act, 1881, orchestrating a smooth flow of fund transfer. It is an unconditional order for payment with mandated signatures. Once you finish the online bank account opening process, you\u2019ll receive your cheque book shortly at your address. Remember to contact your bank if you don\u2019t receive your cheque book after you open a savings account online. Also read: Open Digital Savings Account Instantly with Video KYC Types of Cheques Different types of cheques are each designed to cater to specific requirements according to the parties involved. Also read: Chequebook: Why It Still Matters in a Digital World Bearer Cheque Bearer cheques are the most common among all bank cheque types. Cheques marked with the words \u2018or bearer\u2019 can be encashed by the person presenting it to the bank. It makes them highly transferable and convenient. It requires no further authorisation or identification of the payee, making it a high-risk cheque if lost or stolen. Order Cheque Contradictory to the bearer cheques, order cheques are payable only to the mentioned party on the cheque. The words \u2018or bearer\u2019 are struck out, enhancing control and security over fund transfers. The bank is liable to check and authenticate the cheque bearer\u2019s identity before releasing the payment of an order cheque. The payee has to endorse the cheque by signing it on the back of the cheque while presenting it. Crossed Cheque Crossed cheques are characterised by two slant parallel lines drawn on the left corner of the cheque with the words \u2018a\/c payee\u2019. This ensures that the funds are transferred only to the account holder mentioned, minimising the risk of fraud. A crossed cheque can be encashed only at the drawee\u2019s bank. Open Cheque In contrast to a crossed cheque, an open cheque is an uncrossed cheque that can be encashed at any bank, offering flexibility of payment. Open cheques are also transferable to other payees. Post-Dated Cheque Post-dated cheques are the ones with a future date on them. This facilitates fund transfers scheduled for a later date. Such cheques are not valid before the date mentioned and can only be used past that date. Stale Cheque Cheques with dates past their validity period of three months are known as stale cheques and aren\u2019t honoured by banks. Traveller\u2019s Cheque Traveller\u2019s cheques are a convenient banking instrument for users, allowing secure and easy currency exchange at any bank worldwide. These are a safe alternative to carrying cash and can be misplaced if lost or stolen. You can request traveller\u2019s cheques once you open a savings account online. Self Cheque Self-cheques are issued by the account holder to themself. They are identified by the word \u2018self\u2019 written on it. Banker\u2019s Cheque Banker\u2019s cheques are issued by a bank on behalf of the account holder to transfer a specified amount to a payee within the same city. The amount is directly debited from the customer\u2019s bank account. It is a non-negotiable type of cheque and hence banks cannot dishonour them. All of these can be issued using the same cheque book type except for traveller\u2019s and banker\u2019s cheques. Generally, chequebooks contain 30 to 50 cheques and account holders get the first one free after online bank account opening.  Disclaimer:  The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Share This:"}