According to HDFC Bank, there are different types of cheques that an account holder can issue, including blank, post-dated, bearer, crossed, and cancelled cheques. Each type has its unique purpose and features, and the account holder must know what cheque to issue based on the situation. For example, a post-dated cheque is issued for a future date payment, while a crossed cheque can only be deposited into an account.
The validity and number of a cheque can last for up to six months from the date it was issued. Any attempt to present an expired cheque will be rejected by the bank.
Why use cheques in the age of digital transactions Cheques are still relevant in situations where cash or other payment methods are not possible. They are also useful for bookkeeping purposes, as they create a paper trail of transactions.
It is currently advisable to issue cheques only to trusted parties to avoid the risks of fraud. The Canadian Bankers Association indicates that cheque fraud is still prevalent, and account holders must safeguard their chequebooks.
Other relevant questions related to what a banked cheque looks like include:
1. What are the common cheque formats used by banks
Answer: Common cheque formats include the standard-size cheque and the wallet-size cheque.
2. What information should be included in a cheque
Answer: A cheque must have the correct amount written numerically and in words, the account holder’s name, the date, and the payee’s name.
3. Can a cheque be deposited into a savings account
Answer: Yes, a cheque can be deposited into a savings account if the financial institution accepts it.
4. How long does it take for a cheque to clear
Answer: The length of the clearance period depends on the bank and the amount indicated on the cheque.
5. Is it possible to stop payment on a cheque
Answer: Yes, an account holder can request a stop payment on a cheque if it has not been processed.
6. What happens if there are insufficient funds to cover the cheque amount
Answer: The cheque will be returned for insufficient funds, and the account holder may incur fees.
7. Can a cheque be deposited without endorsement
Answer: It is not advisable to deposit a cheque without endorsement, as the financial institution may require proof of ownership.
8. Are digital cheques available
Answer: Yes, digital cheques are available, but they function similarly to traditional cheques and require a bank account to issue and receive payment.
Sources:
– « What It Is, How Bank Checks Work, and How to Write One. » The Balance.
– « What is Cheque & Different Types of Cheque. » HDFC Bank.
– « What is Cheque – Types, Features, Use, Validity and Number. » BankBazaar.
– « Cheque Fraud. » Canadian Bankers Association.