July 23, 2016

Can third party encash the self written bearer cheque??

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Cheque Related Frequently Asked Questions

Cheque is as order or instruction  to a bank to pay a stated sum from the drawer's account, written on a specially printed form.

Drawer:
 Who issue the cheque i.e account holder
Drawee: Drawer Bank i.e Account holder's bank
Payee : Person to whom the payment will be made






Drawer issue cheque to instruct drawee to pay an amount to payee

Cheque Related Frequently Asked Questions

When making an over the counter cash payment, to a third party, against a cheque drawn to self or bearer, is it compulsory to get the cheque endorsed [signed] by the account holder on the back?



No its not compulsory because ones a bearer always bearer according to Negotiable Instrument Act.


What is the meaning of  self  written on Cheque?


Self cheque is written by the account holder himself/herself to receive the cash from the branch where he maintained his account. [In CBS System, he/she can also withdraw money through cheque in other branches of his/her bank]




What is Crossed Cheque:
Cross cheque is always paid through bank account. So, payee i.e who got cheque has to deposit cheque to his account and after clearing of cheque payee get money. 



What is the meaning of  Yourself  written on Cheque
Account holder generally issue "yourself" written cheque to bank for asking bank to deduct amount from account holder for the purpose of NEFT/RTGS,Making Fixed deposits,Purchasing of any Banking or financial products like Demand Draft, Pay orders Mutual Fund, Life Insurance etc

Is there any ways to clear the
 cheque bounce history from my bank account?
No, it is not possible because, cheque transaction is maintained in banks file/register. 

Can I deposit cheque in Dormant account?
Yes, Deposits can be done through cheque and also by cash in dormant account. There is no restriction in deposits in dormant account. During withdrawal there is necessary to active the account. 

{Note: For any queries related to cheque then please ask in comment section of this article. Our Experts from banks will resolve issues related to cheque}