![]() ![]() As a result, banks require the bearer to sign the back of the cheque as proof that the amount printed on the cheque has been received. The banks are obligated to pay the individual whose name is written on the cheque. To certify the receipt of funds from the bank, the encasher must sign on the back of the bearer cheque. However, if the check amount is significant, the bank may request identification to verify the transaction. When presenting a bearer check for encashment, the bank does not require any identification. The transferor of a check does not need to endorse check when passing it on. A bearer cheque is passed on to someone else. Drawee bank pays the cheque to bearer or presenter of the cheque over the counter. The word ‘bearer’ does not appear on the bearer cheque. Cheque BearerĪ bearer cheque can be made payable in cash or in the name of a specific person. A cheque may include a number of built-in security elements which make it much harder for a forger to change the information on the paper. The new payee is the individual to whom the cheque is assigned. A cheque is frequently negotiable, meaning the payee can endorse it and assign it to someone else. A cheque can, however, be written to cash, that indicates that the bank will pay the person who delivers the cheque. Typically, a cheque is prepared to approve payment to a single entity, termed as the payee. A cheque is one of the most widely used forms of payment, but its use has decreased as other forms of electronic payment have grown in favour. A cheque must include the payee’s name, amount to be paid, and the date in order to accomplish this. ChequeĪ cheque is a document that authorises the withdrawal of monies from a bank account. It’s a type of negotiable instrument that’s utilised to complete a deal. A cheque can be written by either a current or a savings account holder. A cheque is written to instruct the bank to pay a certain amount to the payee or beneficiary named on the check. ![]()
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