slide.alttag

General

Types of Cheque in Indian Banking System


07, March 2026

Cheques were the principal source of cash transactions for a long time, even in the present banking system!

As you know, now-a-days, money transactions are done via online or, let's say, the UPI transaction. Cheques are highly reliable when it comes to offering a secure and trackable means of payment.

Today, we are going to discuss what a cheque is and the various types of cheques issued in the Indian banking system.

There are several types of cheques issued across different banks in India. To have a detailed idea about that, you can have look at the list of different types of cheques issued below.

Before we move on to the various types of cheques that are available in India, let us be aware of what a check is.

So,

What is a Cheque?

An actual cheque can be described as a document or a piece of paper instructing a bank to pay an amount from the drawer's account to the payee. The person who issues or writes the cheque is referred to as the drawer, and the person to whom the bank account will transfer the funds is known as the payee.

You may have heard of the cheque book, haven't you? If not, a check Book is a small-sized book that has pre-printed cheque leaves that a particular bank provides to all the account holders.

Parties to a Cheque

Below are the major parties involved in cheque transactions.

Drawer: A drawer is a person who issues the cheque from their account.

Payee: A payee is the individual or entity to whom the payment is directed.

Bank(Drawee): A bank facilitates the transaction by honoring the cheque’s payment.

adalttag

Different Types of Cheques

  • Crossed Cheque

  • Self Cheque

  • Bearer Cheque

  • Post Dated Cheque

  • Account Payee Cheque

  • Blank Cheque

  • Traveler’s Cheque

  • Order Cheque

  • Stale Cheque

  • Ante Dated Cheque

  • Mutilated Cheque

Let's explore these types of cheque in detail

1. Crossed Cheque:

Crossed cheque, also called crossing of cheque is a cheque that is crossed with two parallel lines. This crossing of cheque can be done in two ways, either the entire cheque is crossed with two parallel lines, or a two parallel lines on the top-left corner of the cheque. A crossed cheque is recognizable by two parallel lines across the cheque, it is payable only through a bank, ensuring added security.

2. Self Cheque:

A self cheque withdrawal is done when a person wishes to withdraw money from their bank account. A self cheque can only be withdrawn by the account holder himself. A cheque issued by an account holder to themselves for cash withdrawal, facilitating personal transactions. A self check can be identified by the self written on the payee name column.

3. Bearer Cheque:

Bearer Cheque is a check issued to the person who bares or carries the check. Made payable to the bearer and is risky due to its negotiability, can be encashed by anyone presenting it. Bearer Cheque are transferable by delivery, ie., if the cheque to took to the bank, he or she can issue for the payment as per the amount mentioned in the cheque.

4. Post-Dated Cheque:

By mentioning a date in the future, Post-Dated Cheque is a cheque written by the drawer to the payee. Carries a future date, indicating when the payment becomes valid, used for future transactions or as a security measure. A payee can only issue for the amount on the date mentioned in the cheque.

5. Account Payee Cheque:

An Account Payee Cheque is a secured type of cheque that ensures that the amount is thoughtfully issued to the payee account. It is one of the most secured and most commonly used cheque that enable the payee that they get the amount in any matter that it is displayed in the leaf. Account Payee Cheque can be identified by, a name account payee written on the top-left corner of the cheque.

6. Blank Cheque:

If someone has given you a black cheque, know that you are offered to issue as much money you are required from the drawers bank account. A cheque without specific details, extremely risky if lost or stolen, potentially enabling misuse. A blank account can be identified by, living black spec in the amount column and must be signed by the drawer.

7. Traveler’s Cheque:

Traveler’s Cheque is a special cheque issued by the non-banking institutes in India for the travelers to meet their international travel expenses. It is designed for secure payments while commencing travel to minimize the risk of loss or theft of money. A Traveler’s Cheque can be identified by its unique look offered by banking or non-banking institutes.

8. Order Cheque:

An order cheque is a cheque that can only be used or be withdrawn from the drawers bank by the payee or the person to whom the cheque is drawn to. Payable to a specific person or entity as per the drawer’s instruction, ensuring controlled payment. Order cheque is major used in large payment that is done for large purchases, such as - car, home, etc.

9. Stale Cheque:

A stale cheque is also called an expired dated cheque. A slate cheque occurs when a cheque is written 6 months before and having used or submitted into the bank to withdraw or deposited the amount. An expired cheque is no longer valid for payment after a certain period, usually six months.

10. Ante-Dated Cheque:

Ante-Dated Cheque or a backdated cheque is a cheque that is written by the drawer but mentions the date that is earlier than that of the present date. In simple words, an ante-dated cheque is a cheque that bears a date prior to the issuance date, allowing for future payment on the specified date.

11. Mutilated Cheque:

Mutilated Cheque is a damaged or defaced cheque that requires bank assessment and validation for payment. In simple words, a cheque that is toned or damaged is known a Mutilated Cheque. The bank will not process the payment of the cheque unless they get a conformation from the drawer of the cheque.

Major Importance of Cheque

Cheques hold significant importance in the financial operations of every person. Let's have a look at some of the major importance of cheque:

  • Traceability: Recordings of transactions allow for simple tracking and reconciling.
  • Security: Built-in security measures and bank involvement reduce risks of fraudulent activities.
  • Flexibility: Various types cater to different transactional needs, offering versatility.
  • Legal Validity: Cheques serve as legal financial documents, ensuring accountability.

With the evolution of digital payments, cheques continue to maintain relevance in various financial transactions, showcasing their adaptability in an ever-changing financial transaction process.

So, that's it. These are all you need to know about cheques and some of the major types of cheques in banks in India.

Trending Blogs

Most Frequently Asked Questions?

What are the different types of cheques?

The different types of cheques include bearer cheques, order cheques, crossed cheques, and self cheques.

What are the classes of cheque?

The classes of cheques typically encompass open or uncrossed cheques, crossed cheques, and stale or post-dated cheques.

How many bank cheques are there?

There are various types of bank cheques, but they commonly fall under categories like cashier's cheques, traveler's cheques, and certified cheques.

What are the three parties of a cheque?

The three parties of a cheque are the drawer (issuer), payee (recipient), and drawee (bank or financial institution).

Other General Blogs

21/1, Cunningham Rd, Shivaji Nagar,
Bengaluru, Karnataka 560001

+91 9164247247 (9:30 AM - 7:30 PM)
e-mail : enquiry@homes247.in

Stay Connected

Copyright © 2018 VSNAP Technology Solutions Pvt Ltd | All Rights Reserved.

homiAiChatButton

Hi, I’m Homie 👋
Click to Post Your Property easily with AI