This is a presentation made on cheques ,It consists of all the information about : what are cheques,its legal definition, its history, the generalized features, the cheque types depending on the situation we use then and all the security features of cheques and the related case study.

1. CHEQUES
Section 5 of the Indian negotiable instrument act of 1881 defines the cheque as “a bill of
the exchange drawn specially on a specified banker and not on expressed to the payable
otherwise than on demand

2. MEANING AND DEFINITION
 Thus a cheque is also a bill of exchange with three
additional qualification.
 (a) it is always drawn on a specified banker.
 (b)it is always payable on demand.
 (c)it includes the electronic image of a truncated
cheque and also a cheque in electronic form.
 in other words “cheque is an instrument in writing
containing an unconditional order addressed to a
banker ,sign by the person who has deposited money
with the banker, requiring him to pay on demand a
certain sum of money only to or the order of certain
person or to the bearer of instrument.

3. ESSENTIAL FEATURES OF A CHEQUES ARE
 1.a cheque must be in writing .the writing may be by
means of a pen, a type writer , printed characters,
ball pen or even pencil because law not specified the
writing materials with which a cheque has to be
written.
 2. cheques must be in the foam of order and not in a
foam of request.
 3.the order must be unconditional. If any condition is
attached with the order, the cheque will lose it’s
legality.
 4.the amount demanded must be for certain amount
in money and not in kind .
 5.the payment must be made to a certain person
berer or self

4.  6. it must be drawn on a banker.
 7.it must be signed by the account holder.

5. 4 TYPES OF CHEQUES
1. OPEN CHEQUES: A cheque is called opened cheque
when it is open when it is possible to get cash over the
counter at the bank. The holder of on open cheque can
receive payment over the counter of the bank, deposit
cheque in his own account or pass it to someone else
by signing on the bank of a cheque.
2. BEARER CHEQUES: A cheque which is payable to
any persons who presents it for the payment at the
bank counter is called bearer cheque.
3. ORDER CHEQUES: It is the one which is payable to a
particular person. In such a cheque , the word “bearer”
maybe cut out or cancelled and the word “order” maybe
written.

6. 4 CROSS CHEQUE: When a cheque is crossed, the
holder cannot encash it at the counter of the bank. The
payment of such a cheque is only credited to the bank
account of the payee.
Based on location, cheques are:
1. Local cheques
2. Out station cheques
3. At par cheques

7.  BASED ON ITS VALUE, CHEUES ARE:
1. NORMAL VALUE CHEQUES
2. HIGH VALUE CHEQUES
3. GIFT CHEQUES
 BANKS ALSO OFFER CHEQUES
WHICH GURANTEE PAYMENTS:
1. SELF CHEQUES
2. POST DATED CHEQUES
3. BANKER’S CHEQUE
4. TRAVELLER’S CHEQUE

8. ADVANTAGES OF THE CHEQUES

9.  It is more convenient than carrying cash
around.
 Payments can be stopped if necessary.
 Cheques are safer if crossed.
 One does not have to count notes and
risk making counting mistakes.
 A cheque can be drawn up anytime.
 Somme are negotiable and can be
endorsed in favour of a third party.

10.  They can be post-dated.
 They can be traced if lost.
 Can be posted more cheaply.
 A customer is send a
statement at the end of each
month.

11. SECURITY FEATURES
OF CHEQUES

13. 1.
Features of CTS-2010 Standard Cheque (new)
1. Branch address with IFSC code printed
2. Date of issue in dd/mm/yyyy format within boxes.
3. Printers name with CTS-2010 in left side of cheque.
4. pantograph
5. New rupee symbol instead of bilingual format.
6. Please sign above" is mentioned on bottom right of
the cheque

14. (OLD) CHEQUE- FORMAT
7. Watermark "CTS INDIA
8. Ultra Violet logo of Bank.

15.  Tips For Detecting Counterfeit Cheques:
 COLOR - By fanning through a group of returned checks, a counterfeit may
stand out as having a slightly different colour than the rest of the checks in the
batch.
 PERFORATION - Most checks produced by a legitimate printer are perforated
and have at least one rough edge. However, many companies are now using in-
house laser printers with MICR capabilities to generate their own checks from
blank stock. These checks may have a micro-perforated edge that is difficult to
detect.
 MICR LINE INK - MICR stands for Magnetic Ink Character Recognition. It is
a technology which allows machines to read and process cheques enabling
thousands of cheque transactions in a short time. MICR code is usually a nine
digit code comprising of some important information about the transaction and
the bank.
 the first three digits representing the city code
 the next three digits representing the bank code
the last three digits representing the bank branch code

16.  Shorter clearing cycle
 Superior verification and reconciliation process
 No geographical restrictions as to jurisdiction
 Operational efficiency for banks and customers
 Reduction in operational risk and risks associated
with paper clearing
 No collection charges for collection of cheque drawn
on a bank

18. CHEQUE
FORGERY
The term "forged cheque" is often used to
describe a cheque on which the drawer's
signature is forged or unauthorized. It is the
unlawful use of cheques in order to illegally
acquire or borrow funds that do not exist
within the account balance or account-
holder's legal ownership.
Sometimes the cheque fraud comes from an
employee of the bank itself, as was the case
with Suzette A. Brock, who was convicted of
theft for writing five corporate cheques to her
own birth name from her desk as a loan
servicing agent for Banner Bank of Walla
Walla, WA.
Brock, whose birth name is Angenette Ruth
Jonker, was charged with writing five
corporate checks between August and
February for various amounts. Prosecutors
charged she made out the checks to her birth
name and later deposited them in an account
at Bank of America.
She was arrested on March 9, 2015 after
police were called to Banner Bank’s Human
Resource Corporate Office.
As part of her sentence, Brock was ordered to
pay $15,385.21 in restitution to the bank in
addition to other fines and court fees.