NEGOTIABLE INSTRUMENTS

(CHEQUES)

BY- Shagun,Tanu,Tejashwani,Monika
Diksha ,Avantika,Divya
 PNB BANK
BRANCH BHAUWALA
 CHEQUES
• A cheque is a bill of exchange in which
one party orders the bank to transfer
the money to the bank account of
another party. It is a negotiable
instrument that is covered under the
Negotiable Instruments Act.
• A cheque is a printed form on which
you write an amount of money and
who it is to be paid to. Your bank then
pays the money to that person from
your account.
 TYPES OF CHEQUES
• Bearer Cheque: A bearer cheque is the one in which the payment is made to the
person bearing or carrying the cheque. These cheques are transferable by
delivery, that is, if you are carrying the cheque to the bank, you can be issued the
payment to.
• Order Cheque : In these types of cheques, the words 'or bearer' is cancelled.
Such cheques can only be issued to the person whose name is mentioned on the
cheque, and the bank will do its background check to authenticate the cheque
bearer's identity before releasing the payment.
• Crossed Cheque : A crossed check is any check that is crossed with two parallel
lines, either across the whole check or through the top left-hand corner of the
check. This double-line notation signifies that the check may only be deposited
directly into a bank account.
• Post dated Cheque : If a drawer wants the payee to apply for withdrawal or
transfer of money after the present date, then he/she can fill a post dated
cheque. For example: If the date on which the drawer is filling the cheque is May
10, 2021, but he wants the payment to be done later, he/she can fill the cheque
dates as May 30, 2021. It shall be called a post-dated cheque.
• A post-dated cheque is a regular cheque where the writer specifies a future date
on the cheque. They do that to ensure the payment is made to the payee on or
after the stipulated date.
• A post-dated cheque is a cheque with a future date written on it, indicating that
the funds should not be withdrawn until that date.
 Merits of Cheque
• Cheques are more convenient to
carry than large amounts of cash.
• A crossed cheque is safer to carry
than an uncrossed cheque because it
can only be deposited into a bank
account and cannot be cashed.
• In the event of suspicious activity, a
cheque payment can be stopped or
blocked.
 CONCLUSION
• A cheque is a document that authorizes the withdrawal of monies
from a bank account
• A cheque is one of the most widely used form of payment used in
PNB Bank.
• It is a negotiable instrument and serves as a formal request for
payment and should be presented professionally to facilitate a
smooth transaction.