Cheque is an important means of payment. Cheque is used for paying a large sum of money. It is the most widely used tool for drawing money from the bank. Cheque is used by the buyer or debtor to pay the due amount of goods to his seller or creditor out of his bank deposit. Cheque is a written order issued by a depositor to a particular bank directing it to pay a certain sum of money to a certain person or to the bearer of the cheque.
Characteristics Of Cheque
1. An Unconditional Order
The drawer or the depositor should not lay down any condition in the cheque.
2. Drawn Upon A Specified Banker
The drawer issues cheque directing to a particular bank having deposit in it to pay the amount of cheque.
3. Signed By The Maker
The cheque should be signed by the account holder.
4. Amount In Words And Figures
The amount of cheque should be mentioned in words and figures.
5. Payable On Demand
The amount of cheque must be paid by the bank as soon as it is presented at its counter.
Characteristics Of Cheque
1. An Unconditional Order
The drawer or the depositor should not lay down any condition in the cheque.
2. Drawn Upon A Specified Banker
The drawer issues cheque directing to a particular bank having deposit in it to pay the amount of cheque.
3. Signed By The Maker
The cheque should be signed by the account holder.
4. Amount In Words And Figures
The amount of cheque should be mentioned in words and figures.
5. Payable On Demand
The amount of cheque must be paid by the bank as soon as it is presented at its counter.
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