Different
Names Of Cheque:
|
Name Of Cheque |
What does it
mean ? |
Example |
|
Crossed Cheque |
On
the Crossed Cheque, two lines are drawn on the face of the cheque.
Amount mentioned on the cheque is
only transferred to the bank account of the payee. No cash is made. |
If
the crossed cheque is issued by Rahim to Zaman, Zaman cannot encash it
directly because he has to put the cheque for collection in his account. If
Zaman wants to pay Karim, he can simply endorse the cheque to karim. Now
Karim can also endorse the cheque to anyone
so on. |
|
Account payee
Cheque |
On
the account payee cheque, two lines are drawn with the word “account payee”
on the face of the cheque. Account mentioned on the cheque is only
transferred to the bank account of the payee whose name is mentioned on the
cheque. No cash payment is made. This cheque cannot be endorsed to the third
party. |
If
the account payee cheque is issued by Rafiq to Zaman, cheque neither be encashed
directly nor be endorsed to someone by Zaman. It has to be collected
to the account of Zaman only. |