Do you know what a 'cheque' is?

September 12, 2022 11:28 PM
As soon as the payee gets the check, any money mentioned on it is withdrawn from the drawer's account.

Checks are a sort of cashless payment that makes transactions simple for users. The drawn check's amount is subsequently transferred from the drawer's bank account to the payee's bank account. Cheques continue to be the foundation of the banking industry and are still utilised for a significant portion of low to high limit transactions even when digitization is at its height.

A check is a type of payment instruction that tells banks how to move money from one bank account to another. The one who writes and signs the check is referred to as the drawer, and the individual who receives the funds is referred to as the payee. The safest, most secure, and most practical way to perform a transaction between two parties is by using a bank check. Instead of actual cash, the transaction uses a real bank check that is connected to the user's account.

Things to keep in mind

Here are a few things to keep in mind about a cheque-

  • A cheque can be issued in the name of a current or savings account
  • The amount of the cheque cannot be cashed by anyone other than the Payee
  • A cheque that does not include the specified date is considered invalid
  • A bank cheque is valid for three months from the date of issue
  • The bottom of the cheque has a 9-digit MICR (Magnetic Ink Character Recognition) code that simplifies the cheque clearance process
  • The amount of the cheque should be written in words and figures
  • The drawer must sign the cheque in an appropriate manner without overwriting
  • The payee’s name should be properly written on a cheque


Comparing carrying checks to carrying cash, cheques are more handy.

Carrying a crossed check is never dangerous.

The check payment might be halted or blocked in the event of any suspicious behaviour.

Post-dated checks are possible.

Because a payee may be asked to show a legitimate identity document that matches the information on the cheque, cheques are safe.

With only one check, a drawer may pay out more money to a payee.

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