![]() Post Dated Cheque is meant to be cleared at some distant date in future. The bank requires no other validation or authentication to clear this type of cheque.Īs a consequence, the bearer's cheque if misplaced or stolen becomes susceptible to unauthorised access and fraudulent activity.Īs the name indicates, these cheques are typically used for buying bank drafts, pay orders and fixed deposit receipts.īy simply crossing the cheque, the drawer indicates the bank to debit his/her account to the extent of the amount mentioned on the pay yourself cheque. The bearer or the carrier of the cheque can encash the amount when he/she presents this type of cheque to the bank. In this type, the word bearer is printed on the cheque. Traveller's cheques do not have an expiry date and can be utilised for travel purposes at a later date. Such cheques are issued by a bank in one country which can be cleared by another bank in another country in the relevant currency. When trotting around the globe, the traveller's cheque comes as handy as you can encash these cheques for your overseas travel rather than carrying physical money in your wallet. The payer/issuer of the cheque is required to put his/her signature on the front and rear side of the cheque. This type of cheque is transferable from the original beneficiary to another. ![]() One can clear this cheque at any bank and the payee/beneficiary can encash the amount mentioned on the cheque. By doing so, the funds would only get transferred to that specific beneficiary's account ensuring a safe and secured mode of transfer.Ī cheque without any parallel lines drawn on the topmost left corner is called an open cheque or an uncrossed cheque. In this type of cheque, it strikes parallel lines on the top left corner of the cheque and then writes the payee or the beneficiary's name and amount. An important caveat is to keep such cheques safely as it can lead to unauthorised withdrawal from your bank account, if anyone lays their hands on a ' self' signed cheque. For example, when you need cash, you can write cheque as 'self' to withdraw funds from your account.
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