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(i) Open cheque: A cheque is called „Open? when it is possible to get cash over the,
counter in the bank. The holder of an open cheque can do the following: - Receive its payment over the counter at the bank, - Deposit the cheque in his own account - Pass it to some one else by signing on the back of a cheque.
(ii) Crossed cheque: Since open cheque is subject to risk of theft, it is dangerous to
issue such cheques. This risk can be avoided by issuing other types of cheque called „Crossed cheque?. The payment of such cheque is not made over the counter at the bank. It is only credited to the bank account of the payee. A cheque can be crossed by drawing two transverse parallel lines across the cheque, with or without the writing Account payer or Not Negotiable.
(iii) Bearer cheque: A cheque which is payable to any person who presents it for
payment at the bank counter is called Bearer cheque. A bearer cheque can be transferred by mere delivery and requires no endorsement.
(iv) Order cheque: An order cheque is one which is payable to a particular person. In such a cheque the word bearer may be cut out or cancelled and the word order may be written. The payee can transfer an order cheque to someone else by signing his or her name on the back of it.
NatalieR answered the question on February 15, 2022 at 01:27
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