Cheques mp

1,551 views

Published on

Published in: Economy & Finance, Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,551
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
29
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Cheques mp

  1. 1. CHEQUES
  2. 2. CHEQUES• SECTION 6 OF NEGOTIABLE INSTRUMENTS ACT DEFINES A CHEQUE AS “ A BILL OF EXCHANGE DRAWN ON A SPECIFIC BANKER AND NOT EXPRESSED TO BE PAYABLE OTHERWISE ON DEMAND”.
  3. 3. CHEQUES• IT IS AN INSTRUMENT – IN WRITING – CONTAINING AN UNCODITIONAL ORDER – SIGNED BY MAKER – DIRECTING A SPECIFIED BANKER
  4. 4. CHEQUES– TO PAY ON DEMAND A CERTAIN SUM OF MONEY– ONLY TO OR TO THE ORDER OF A CERTAIN PERSON– OR TO THE BEARER OF THE INSTRUMENT.
  5. 5. CHEQUES• BANKS ISSUE BLANK, PRINTED CHEQUE FORMS TO THEIR CUSTOMERS.• THE FORMS ARE MADE OF SPECIAL PAPER SO AS TO FACILITATE THEDETECTION OF ALTERATIONS.
  6. 6. CHEQUES• THE FORMS ARE ISSUED WITH MAGNETIC CHARACTERS TO FACILITATE MECHANICAL PROCESSING.• WHEN CHEQUE FORMS ARE ISSUED, THE SERIAL NUMBERS ARE NOTED AGAINST THE RESPECTIVE ACCOUNTS.
  7. 7. CHEQUES PERIOD OF VALIDITY• A CHEQUE MAY BE ANTE-DATED OR POST-DATED.• IN PRACTICE A CHEQUE IS COSIDERED STALE OR OUT OF DATE IF PRESENTED FOR PAYMENT AFTER SIX MONTHS FROM THE DATE IT BEARS. (IF NOT MENTIONED OTHERWISE ON THE CHEQUE)
  8. 8. CHEQUES PERIOD OF VALIDITY• SUCH CHEQUE IS NOT PAID WITHOUT THE DRAWER’S AUTHORIZATION.• POST-DATED CHEQUES WILL NOT BE HONOURED BY THE BANK.• THE HOLDER OF AN UNDATED CHEQUE HAS AUTHORITY TO FILL IN A DATE.
  9. 9. CHEQUES PERIOD OF VALIDITY• THE DATE OF A CHEQUE IS A MATERIAL PART OF IT.• ANY ALTERATION IN DATE NEEDS DRAWR’S AUTHENTICATION.
  10. 10. CHEQUES AMOUNT• THE AMOUNT ON A CHEQUE IS A MATERIAL PART OF IT.• ANY ALTERATION IN AMOUNT NEEDS DRAWR’S AUTHENTICATION.• THE AMOUNT IS MENTIONED BOTH IN WORDS AND FIGURES.
  11. 11. CHEQUES AMOUNT• IF THERE IS A DIFFERENCE IN AMOUNT IN WORDS AND IN FIGURES THEN BANKS, IN PRACTICE, PAY THE AMOUNT IN WORDS.• SOME BANKS AS AN ABUNDENT PRECAUTION RETURN SUCH CHEQUES.
  12. 12. CROSSING OF CHEQUES• A CHEQUE CAN EITHER BE UNCROSSED (OPEN) OR CROSSED.• IF A CHEQUE BEARS TWO PARALLEL TRAVERSE LINES, ACROSS THE LEFT HAND TOP CORNER, THEN IT IS A CROSSED CHEQUE.• UNCROSSED CHEQUE CAN BE GOT ENCASHED ACROSS THE COUNTER.
  13. 13. CROSSING OF CHEQUES• A CROSSED CHEQUE CAN NOT BE ENCASHED ACROSS THE COUNTER• CROSSING IS OF TWO KINDS GENERAL AND SPECIAL• A SPECIAL CROSSING CONSITS OF AN ADDITION OF THE NAME OF A BANKER ACROSS THE FACE OF A CHEQUE.
  14. 14. CROSSING OF CHEQUES• WHERE A CHEQUE IS SPECIALLY CROSSED, THE DRAWEE BANK SHALL NOT PAY IT OTHERWISE THAN TO THE BANKER TO WHOM IT IS CROSSED.• “ACCOUNT PAYEE” CROSSING DOES NOT AFFECT TRANSFERABILITY OR NEGOTIABILTY OF THE CHEQUE.

×