A self-cheque is drawn when the drawer wishes to withdraw money from the bank in cash for his use. This cheque can only be encashed in the account holder’s or the drawer’s bank. This cheque must be used carefully because if it is lost, another person may easily get it encashed by visiting the drawer’s bank.

For a bearer cheque, anyone can go and withdraw cash from the bank branch. Remember that the cheque mustn’t be crossed. Yes, a self cheque can be paid to the bearer unless it is crossed and marked account payee.

Types of Cheques: Know What are the Different Types of Cheques

• Bearer Cheque. A bearer cheque is the one in which the payment is made to the person bearing or carrying the cheque.
• Order Cheque.
• Crossed Cheque.
• Open cheque.
• Post-Dated Cheque.
• Stale Cheque.
• Traveller’s Cheque.
• Self Cheque.

An account payee cheque is a bearer’s cheque that has the words ”account payee” written on the top left-hand side, within two parallel lines, and crossed twice.

Write name of the payee next to ‘Pay’. Note: Write ‘Self’ if you’re writing a self cheque to withdraw money from your own bank account. Write just after ‘Pay’, don’t leave blank space to make sure no one can make changes. Thereafter, put a line to make sure no one can add another name on your cheque.

2) Order Cheque Order cheques are the cheques which are withdrawn for the payee(the person whose name is written on the cheque). Before making payment to that payee,cross-checks check the identity of the payee.

A cheque which is payable to a person whosoever bears, is called bearer cheque. The cheque sometimes can be made payable to “Cash” or bearer or made payable to a specific name, for example, “bujji sekhar or Bearer”. This cheque is payable by the drawee bank over the counter to the Bearer or presenter of the cheque.

An order cheque is a cheque where only the person or party in whose name the cheque has been drawn, can withdraw the cash. The person collecting the cheque has to give an identity proof to encash the cheque. The payee can transfer an order cheque to someone else by signing their name on the back of it.

The following are the essential features of a cheque:

• A cheque must be in writing.
• It must contain an order to pay.
• The order to pay must be unconditional.
• A cheque must be drawn on a specified banker.
• It must be drawn by the drawer of the cheque.
• The cheque should be signed by the drawer.

Features of a Banker’s Cheque

• Banker’s cheques are issued only for the clearing area of the respective bank. It can be cleared in any branch of the same bank and city as it comes under the local jurisdiction.
• The validity of a banker’s cheque is 3 months from the date of issue.
• A banker’s cheque cannot dishonour at all unless it is a fake.

Security features are the vital line of defence against the cheque frauds. The security features present in the cheque consist of the watermarks, logo, Serial number, account number, bank name which are visible under different light sources and instruments.

Who may Cross a Cheque ?

• 1) The Drawer:
• The Drawer may Cross the Cheque generally or specially.
• 2) The Holder:
• Where the Cheque is uncrossed, the holder may cross it generally or specially. Where it is crossed generally, he may cross it specially.
• 3) The Banker:
• See also.
• Distinction / Difference between a bill of exchange and Cheque.