Cheque

A Cheque can be

a) An open cheque – payable at the counter of the bank
b) Bearer Cheque – payable to the person who presents the cheque for encashment.
Transferable by mere delivery.
c) Order Cheque – payable to the person named in the cheque. When the word bearer is
cancelled it becomes an order cheque.
d) Crossed Cheque – cheque with two parallel transverse lines are drawn with or without
the words between the lines. It can only be credited to the account of the payee.
e) Stale Cheque – a Cheque whose validity period is over. An Out-dated cheque.
f) Ante-dated cheque – a cheque contains the date on which it is drawn. If it bears a
priordate or back date, it is called ante-dated cheque.
g) Post-dated cheque – cheque bearing a date later than the date on which it is drawn.
h) Mutilated cheque – torn into pieces.
a) General Crossing - cheque bearing two transverse parallel lines at the left hand top
corner, with or without words (not negotiable).
b) Special crossing – when a cheque bears the name of the bank with or without the words
(not negotiable) between the transverse lines.
c) Restrictive crossing / Account payee Crossing – cheque can be paid by way of credit to
account only. Marked as a/c payee between the lines.
d) Double Crossing – when a second bank act as an agent of the first collecting banker it is
said to be doubly crossed.