A cheque is a written instruction that tells your bank to pay a specific amount of money to someone from your account. It’s one of the oldest, most trusted ways to make payments—still widely used in India for both personal and business transactions.
Simple Definition
A cheque is:
A paper-based order you sign to tell the bank to pay a certain amount from your account to someone else.
It’s issued by an account holder (drawer) and paid to a person or organization (payee).
Key Details on a Cheque
- Drawer: You (the account holder issuing the cheque)
- Payee: The person or business getting the money
- Drawee: The bank where your account is held
- Amount: Must be written in both words and numbers
- Date: The cheque is valid for 3 months from this date
- Signature: Must match your bank records
Types of Cheques
| Type | Description |
|---|---|
| Bearer Cheque | Payable to whoever presents it at the bank |
| Order Cheque | Payable only to the person named on the cheque |
| Crossed Cheque | Can only be deposited—not cashed directly |
| Post-Dated Cheque | Dated for a future day—cannot be cashed before that |
| Blank Cheque | Signed, but no amount/date written—used carefully |
| Stale Cheque | Older than 3 months—cannot be processed |
| Cancelled Cheque | A voided cheque used for KYC/verification purposes |
How a Cheque Works
- You write a cheque to someone (payee)
- They deposit it at their bank
- Your bank verifies details (signature, balance, etc.)
- Funds are transferred from your account to theirs
✔ Safe for large transactions
✘ Processing may take 1–2 working days
How to Write a Cheque (Safely)
- Use a black or blue pen
- Cross the cheque with “A/C Payee” if you want it deposited only
- Write amount in figures and words without blank spaces
- Sign clearly and correctly
- Don’t sign a blank cheque
Benefits of Using Cheques
- Safer than carrying cash
- Useful for official payments (rent, tuition, bills)
- Accepted as proof of payment
- Can be post-dated for future payments
FAQs
Q: What’s the validity of a cheque?
A: 3 months from the date written on it.
Q: Can I cancel a cheque after writing it?
A: Yes—write “Cancelled” across it and notify your bank if it’s been given to someone.
Q: What is a bounced cheque?
A: A cheque that fails due to insufficient balance or wrong signature.
Q: What is an account payee cheque?
A: A cheque that can only be deposited into the payee’s account, not cashed.
