How to write a account payee cheque india

Having recorded this information would be handy at times and will help you to act faster. The payee cannot endorse this cheque to anyone else. What is Account Payee Cheque?

cheque payee name rules

A lot of times, it happens that you need to cancel the payment, but do not remember the details. This is called an endorsement.

How to encash account payee cheque

This type of cheque has features similar to that of a bearer cheque; however it cannot be endorsed merely by handing it over to someone else. This type of cheque is highly unsecure and can be misused when lost. See image below. Always keep your chequebook in a safe place and never pre-sign your blank cheques. Since the amount will only be paid by depositing it into the account of the payee, there is least chance of misuse. Always write a crossed or account payee cheque in order to make sure that the amount reaches the right beneficiary. Mention your mobile number and account number on the backside of the cheque while depositing c. But there are times when people make the most obvious and sometimes careless mistakes while writing a cheque that can easily result in frauds or cheques being misused or dishonored. Drawee is the party upon whom the drawer writes the cheque. Banking terminologies that one must be aware of as part of the cheque issuance process are Drawer, Drawee, and Payee. Having recorded this information would be handy at times and will help you to act faster. Imagine if a cheque is lost, all this comes in to play.

Hence, the former must not be confused with the latter. Sanjay can then re-issue the same cheque to Vijay. Today we are going to discuss the key points to keep in mind while writing a cheque. But there some simple things we overlook while writing out a cheque to someone that can easily be misused.

Moreover, these cheques do not require any endorsing and can be easily handed over to a third party. In this case, if the cheque gets dishonoured, Vijay can file a case against Sanjay and Sanjay can in turn file a case against Ajay.

Such cheques can be encashed over the counter by the person who holds it. His name will be mentioned on cheque, so he is an authorized person to receive cash.

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Account Payee Cheque