Meaning of Cheque

Cheque

Cheque is a written order.

This order is given to the bank by an account holder.

Account holder may be person or institution.

Cheque is issued for the payment of a certain amount out of deposit.

It may be to the self or others.

In short, a cheque is an order on a banker to pay the money.

In a cheque, following points must be written in clear:

Date

Withdrawn amount in figures and in words

Bearer, order or crossed indication

Two signatures of account holder (for person)

One stamp of the company and two signatures of account holder (if firm)

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