Quick Answer: What Does Or Bearer Mean On A Cheque?

How many types of Cheque are there?

Various cheque types are bearer cheque, order cheque, crossed cheque, account payee cheque, blank cheque, post dated cheque, open cheque, uncrossed cheque, self cheque, bankers cheque, cancelled cheque, stale cheque, mutilated cheque, gift cheque, traveller’s cheque.

Which one to use in which situation?.

What is the validity of bearer Cheque?

Revised validity period of Cheques, Drafts, Pay Orders & Banker’s Cheques. As per RBI guidelines, with effect from April 1, 2012, the validity period of Cheques, Demand Drafts, Pay Orders and Banker’s Cheques will be reduced from 6 months to 3 months, from the date of issue of the instrument.

What are the rules of Cheque?

Here are the key things to know about the new rule: An account holder shares the details of the issued cheque like Cheque Number, Cheque date, Payee name, Account number, Amount, etc with the bank along with an image of the front and reverse side of the cheque, before handing it over to the beneficiary.

Should I cross bearer in Cheque?

For a cash cheque: Don’t cross your cheque. Don’t delete the words “or bearer” on the cheque. Don’t add the words “Account Payee Only” (or “A/C Payee Only”)

Is it compulsory to sign on backside of Cheque?

When you write a check, the only place you need to sign is on the front—right on the signature line. … If you receive a check, you’ll need to sign the back to deposit or cash it. Along with your signature, you might include instructions that limit how the check can be used.

What is multi City Cheque?

Multi-City Cheque (MCC): It is a cheque drawn by a customer of the Bank in favour of a person/entity named therein and is payable at par at all branches of the Bank, subject to detailed terms and conditions as under. … In case of a Multi City Cheque, the term drawee would connote any branch of the Bank in India.

Why do we cross the Cheque?

Adding a crossing to a cheque increases its security in that it cannot be cashed at a bank counter but must be paid into an account in exactly the same name as that which appears on the ‘payee’ line of the cheque (i.e. the person who has received the cheque, who is legally the “payee” and “holder” of the cheque).

What is a bearer Cheque?

What is a Bearer Cheque? A bearer cheque can be used to be payable as Cash or bearer with a specific name. … The cheque is payable over the counter to the bearer or the presenter of the cheque by the drawee bank. A bearer cheque can be transferred to another person.

Can I withdraw cash from bearer Cheque?

There is no specified withdrawal limit on bearer cheque. … In case of a bearer cheque of withdrawal amount of above Rs 50,000, then the bank must verify the identity and address of the individual before disbursing the cash.

Can anyone withdraw self Cheque?

Yes, a self cheque can be paid to the bearer unless it is crossed and marked account payee. … For a bearer cheque, anyone can go and withdraw cash from the bank branch. Remember that the cheque mustn’t be crossed. Some branches deny payments but in no case it must happen.

Who can withdraw money from self Cheque?

Writing ‘self’ on cheques is not safe at all as anyone can claim the cheque as his/her own and the issuer and the bank will not have any clue about the person who encashed the cheque.

Is self Cheque a bearer Cheque?

Exactingly the words ‘Self’, ‘Our Selves’ or ‘pay cash’ are not a noun, as persons of that name does not exit and therefore paid to the account holder. When a cheque endorsed in blank by the drawer, even an order cheque becomes a bearer cheque.

Can I encash my Cheque in any branch?

Yes, it is possible for you to cash a cheque at any bank without being an account holder. How do I cash a check from a different bank from my own? Go to your bank and cash it there. Your bank can cash a check from any bank, as long as it’s made out to you.

What is the difference between order and bearer Cheque?

An order cheque is one that can only be paid to a particular payee, who can only pass the cheque to another person by signing his or her name behind it. ADVERTISEMENTS: Whilst bearer cheque does not requires you not to cancel the printed words ‘bearer’ on the cheque, just to fill the amount you want withdrawn.

How do I cash a bearer Cheque?

If you have a bearer cheque, then you can present it to the bank and get the cash amount written on it. Any person can give the cheque and collect the money written on it. For Example: If Sanjana presents the bearer cheque at the bank counter for encashment, the amount will be paid in cash to her.

What is bearer Cheque with example?

A bearer cheque is one that does not has the word ‘Bearer’ on the cheque cancelled. The cheque sometimes can be made payable to Cash or bearer or made payable to a specific name, for example, Ahmad Osman or Bearer. This cheque is payable by the drawee bank over the counter to the Bearer or presenter of the cheque.

How much money can I withdraw through self Cheque?

Individuals can withdraw cash up to Rs 2500/- per day from ATM. This will enable dispensing of lower denomination currency notes for about Rs 500/- per withdrawal.