Types of Cheque

1. Bearer Cheque

A bearer cheque is the type of cheque that allows the person bearing or carrying the cheque to
the bank to receive the payment specified on the cheque. These cheques have the words “or
bearer” printed in front of the name of the payee. It means that the amount of the cheque
issued can be either received by the payee or the bearer. It also makes a bearer cheque
transferable, as anyone who is carrying it can receive the payment. The bank need not request
the authorisation of the issuer to make the payment of this cheque1.

How can you identify a bearer cheque? Is when you see the words "or bearer" printed on them.

2. Self Cheque

If the drawer wishes cash for himself he can issue a cheque where in place of the Payee’s name
he can write “SELF” and get encashment from the branch where he owns an account 2.

For example: If a person wants Tsh.1,000,000/- in cash, he can issue a self cheque and visit his
bank branch where he owns an account and get encashment in place of a cheque.

3. Traveller’s Cheque

As the name suggests, the Traveler’s cheque can be used when a person is travelling abroad
where the Tanzanian currency is not used.

If a person is travelling abroad, he can carry the traveller’s cheque and get encashment for the
same in abroad countries3.

4. Crossed cheque

1
https://paytm.com/blog/cheque-book/types-of-cheque/

2
https://www.hdfcbank.com/personal/resources/learning-centre/save/different-types-of-cheque-you-need-to-know

3
https://www.idfcfirstbank.com/finfirst-blogs/finance/types-of-cheques
When we cross a bearer cheque twice with two parallel lines on the left-hand top corner, it
becomes a crossed cheque. Only the name written on it can get the amount transferred to his
account.

A crossed cheque is one on which the issuer has drawn two parallel transverse lines at the top
left corner of the cheque

Because of these lines, no one else will be able to obtain the cheque A crossed cheque reduces
the risk of money being received by an unauthorised person because the amount can only be
cashed through the payee’s bank4.

5. Stale cheques

Stale cheques are those with a written date that exceeds the validity period and can no longer
be cashed, The amount of the cheque must be encashed within three months 5.

6. Cash cheques

Are written for a cash payment. The cheque can be cashed at a bank branch without requiring
any official identification. Because cheques are not made out to an individual, these cheques
are akin to cash.

7. Anti-Dated Cheque
If a cheque contains a date, prior to the date of presentation it is called Ante-Dated cheque
Banker will honour this cheque till the completion of 3 months from the date of the cheque 6.

8. Order Cheque
Order cheque are the cheques which are withdrawn for the payee (the cheque withdrawn for
another person). Before paying the amount to that payee, banks cross check the identity of the
payee7.
4
https://paytm.com/blog/cheque-book/types-of-cheque/

5
https://www.idfcfirstbank.com/finfirst-blogs/finance/types-of-cheques

6
https://www.calpnetwork.org/wp-content/uploads/2020/03/calp_cheques_screen-1.pdf

7
https://paytm.com/blog/cheque-book/types-of-cheque/