What is cheque? Explain the types of cheque.
Cheque C heque is a written, unconditional, and signed order from an account holder (drawer) to their bank, instructing the bank to pay a specific amount of money to a designated recipient (payee) or to the bearer of the cheque. Cheques are one of the oldest and most common forms of payment, though their usage has declined in recent years with the rise of digital payment methods. In short, Cheque is a negotiable instrument which contains an order to the bank, signed by the drawer, to pay a certain sum of money to a specified person. Types of cheque: There are mainly three types of cheque. They are as follows: a) Bearer cheque: A bearer cheque is payable to the bearer or the person who possesses the cheque. It does not mention any specific payee's name and can be encashed by anyone who presents it to the bank. Bearer ...