Comparison Of Bearer, Crossed And A/c Payee Cheques

Despite the fact that cheques have been being used for quite a while, numerous individuals don’t have a clue about the difference between different kinds of cheques and their motivation. Cheques require specific subtleties to get away from the name of the payee, date of cheques, the amount in figures, and similar INR in words as well with your authentic signature. 

Bearer Check 

At the point when the words “or bearer” printed on the check are not dropped, it is known as a bearer cheque. Bearer cheque can be moved by conveyance and doesn’t need an underwriting. In basic words, a bearer cheque alludes to a watch that is payable to the person who presents it at the bank. However, these cheques are hazardous on the grounds that they can be abused. In case they are lost, the individual who finds the cheque can encash it. 

Crossed Check 

The crossing of cheque implies drawing two equal lines on the left corner of the cheque with or without extra words like “Account Payee Only” or “Not Negotiable”. Crossed cheques can’t be encashed at the bank counter. It is utilized to directly credit the bank account of the payee, making it an absolute necessity more secure instrument. 

Account Payee Checks 

An account payee cheque is an exceptionally made sure about kind of cheque as the specified amount must be paid to the account holder. The payee can’t embrace the cheque to any other individual. The account payee cheque must be encashed by depositing at the. This causes secure payments to the payee just and shields from any kind of abuse. 

Fast Comparison Between Checks 

The bearer cheque doesn’t contain the name of the payee and is payable to the individual who presents it at the bank. A crossed cheque is a check attracted in favor of a specific individual and the cheque contains two slanting equal lines at the left upper corner of the cheque. This signifies the payee isn’t approved to encash the check directly at the bank. However, the cheque can be utilized to credit the bank account directly. 

In the case of a bearer cheque, the bank must do legitimate verification before making payment to the bearer of the instrument. In case of a crossed check, the name of the individual is already referenced on the cheque. Thus, the money is paid to the specified individual as it were. 

Bearer cheques are undependable and can be abused if lost. The individual who finds it can go to the bank and gather the money. In the case of the crossed cheque, the amount is directly credited to the bank account of the payee. Therefore, this is a lot more secure approach to move money. 

To compose an account payee check, you need to cross two lines on the left corner of the cheque and state “A/C payee in particular” between the two lines. Keep in mind, if you basically cross the cheque and don’t make reference to the words “account payee” it will end up being a crossed cheque and not an account payee cheque. 

The reason why you issue an account payee cheque for the sake of the payee is on the grounds that it’s sheltered. There are minimum odds of abuse of an account payee cheque, as the cheque can be encashed just by depositing it in the payee account. The payee can’t further underwrite anybody making the exchanges through account payee cheques, safe. Account payee cheque is substantial just as long as 3 months.


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