How to write a cheque?

Writing a cheque seems to be a simple task, but remember, issuing a cheque to a person is equivalent to payment of cash and we find frauds related to cheque are very common. Therefore, no need to mention that writing a cheque in right way is crucial to avoid misuse or dishonor of cheque issued…

Features of a cheque leaf

A Cheque is a specially printed paper form issued by the banks to their customers to draw money or pay monies to third parties from their running account like SB/Current Account, Cash Credit Account etc. that contains following features. When you look at a cheque, you find the name of the bank and address of…

Definition of a Cheque

A cheque is defined in section 6 of Negotiable Instruments acts 1881 which provides that, “A cheque is a bill of exchange, drawn on a specified banker and expressed to be payable otherwise than on demand”. The electronic image of a truncated cheque and a cheque in the electronic form (e-cheque) are also termed as ‘cheque’ after coming into…

What is a negotiable instrument?

Section 13 of Negotiable instrument Acts 1881 defines negotiable instrument as under. A “negotiable instrument” means a promissory note, bill of exchange or cheque payable either to order or to bearer. An instrument is said to be negotiated when it is transferred from one person to another in such manner as to constitute the transferee…