Is bearer cheque legal?
Kondody (1998 (1) KerLT 384), the Kerala High Court held that though the cheque does not contain the name of the payee and the printed words “or bearer” are struck off and also it is written pay to cash, is a legal and valid negotiable instrument.
Is bearer cheque transferable?
A bearer cheque is the one in which the payment is made to the person bearing or carrying the cheque. These cheques are transferable by delivery, that is, if you are carrying the cheque to the bank, you can be issued the payment to.
Can I present a cheque after 6 months?
The validity of Personal cheques is normally six months from the date of issue. Once this date has passed the cheque would normally be rejected by the bank. However, there is no cheque expiry date for banks. Therefore a cheque issued by a bank is still valid after 6 months so it does not expire after this date.
How long is a bearer cheque valid?
Revised validity period of Cheques, Drafts, Pay Orders & Banker’s Cheques. As per RBI guidelines, with effect from April 1, 2012, the validity period of Cheques, Demand Drafts, Pay Orders and Banker’s Cheques will be reduced from 6 months to 3 months, from the date of issue of the instrument.
How can I cash my bearer cheque?
Bearer Cheque Go to any branch (in the city) of the bank that the cheque belongs to. Present it for clearance. The bank teller, will verify the details on the cheque and clear it. The cheque will be cleared then and there and you will get the cash.
What is the maximum amount for bearer cheque?
No, there is no withdrawal limit on bearer cheques. However, if the amount is above Rs. 50,000, the bank asks for an ID and verifies the person’s identity in whose name the cheque has been issued. Once the verification is completed, the bank hand over the amount to the person presenting the cheque or the bearer.
How many days is a cheque valid?
The validity of the cheque is three months from the date of the issuance. When the period of validity ends, the check becomes Stale. Such cheques cannot be submitted to the bank for payment. And if they are submitted for payment, they will be dishonoured by the bank.
What are the different types of cheques in India?
Based on these essentials, we explore the different types of cheques in India. 1. Bearer Cheque A bearer cheque is the one in which the payment is made to the person bearing or carrying the cheque. These cheques are transferable by delivery, that is, if you are carrying the cheque to the bank, you can be issued the payment to.
Who is the bearer of a bearer cheque?
The bearer cheque does not have the word ‘bearer’ on the cheque. The cheque is payable over the counter to the bearer or the presenter of the cheque by the drawee bank. A bearer cheque can be transferred to another person. The transferor of cheque while passing the cheque does not need to endorse the cheque.
Who is the issuer of a bank cheque?
A bank is the issuer of these types of cheques. The bank issues these cheques on behalf of an account holder to make a remittance to another person in the same city. Here the specified amount is debited from the account of the customer, and then, the cheque is issued by the bank.
How is an order cheque paid to the payee?
An order cheque is paid to the payee across the bank’s account. The identification of the payee is insisted on by the bank while presenting an order cheque. The bank will also ask for the ID and signature of the payee on the back of the cheque.