The cheque is one of the important ways through which money is transferred or payment is made. Even though online banking, mobile banking etc are becoming more popular and faster ways of money transfer, cheques are still being used frequently.
Cheque Number Location And Its Meaning?
The cheque number is unique that helps you to identify it easily. Let’s break that number down for our clear understanding.
- Every cheque has a 6 digit number that is written at the bottom left corner of the cheque.
- The cheque number is followed by the MICR i.e. Magnetic Ink Character Recognition code. This is a 9 digit code that indicates the bank and its branch that issued the cheque. The starting 3 digits are the city code, next 3 digits are bank code and the final 3 digits are the branch code.
- The 6 digits that come after the MICR code are a part of the account number.
- And the final 2 digits at the bottom are the transaction ID. This ID indicates whether it is a local cheque or payable at par cheque. A local cheque is allowed to be encashed at the issuing bank only, whereas, the at par cheque can be encashed at any branch of the issuing bank. Nowadays, all cheques are at par cheques only.
- A special magnetic ink is used to write these numbers so that the Magnetic Character Ink Reader can read them easily.
- The format of the cheques is same for all the banks in India.
Deposited Cheque Status?
You can easily track the status of the cheque that you deposited in your bank using the following methods:
- You can update your passbook. So if the cheque has been cleared, an entry will be made on the passbook regarding that.
- You can check your balance and last 10 transactions using online banking. It will show the credited amount.
- You can also check your account balance at an ATM.
- When the cheque is cleared and the amount is being deposited in your account, you will also get an SMS from the bank on your registered mobile number.
- Lastly, you can visit your branch and do an inquiry.
There are different types of the cheque with each having its own significance. Let’s go into the details:
1] Personal Cheque
- The cheque that is drawn on your own account is called a personal cheque.
- The person on whose account the cheque is drawn has to sign it.
- This type of cheque is often used to transfer small amounts.
- If the account does not enough amount to cover the cheque then the cheque doesn’t clear. The cheque then bounces and attracts fine from the bank. Therefore, you shouldn’t accept this type of cheques for large amounts.
2] Cashier’s Cheque
- It is a type of cheque that is drawn on the bank’s own funds. It is guaranteed by the bank and is signed by the cashier.
- The bank is responsible for paying the amount. Therefore, it is safe to say that this cheque is guaranteed.
- Real estate transactions use this type of cheques more often.
- There’s a fee that needs to be paid to the bank for you to buy them.
- Cashier’s cheques are normally cleared in a day. In case if the cheque is related to a fraud or misused, then the bank may take more time to discover it. The bank will then take a legal action against the person who withdrew the amount. Therefore, be careful about such cheques.
- These cheques are often referred to as official or bank cheques.
3] Bearer Cheque
- If a cheque has the words “or bearer” appearing on it, then this is called a bearer cheque.
- Bank has to encash it to the person specified on the cheque or to any other person who has this cheque and gives it to the bank.
- Therefore, it is a risky cheque as anyone who stumbles upon it or steals it etc can encash it at the bank very easily.
4] Order Cheque
- When the words “or bearer” are replaced with “or order”, then this is called an Order Cheque.
- This is payable to the specified person or the person to whom it is endorsed/forwarded to.
5] Crossed Cheque
- A cheque that has 2 parallel lines drawn on the upper left corner of the cheque is called a crossed cheque.
- You have the option to add restrictions on this cheque like who and where can this cheque be cleared and if it can be endorsed/forwarded etc.
- This cheque cannot be encashed at the bank, instead, the amount is credited to the payee’s account.
6] Uncrossed/Open Cheque
- The cheque which isn’t crossed is an open cheque.
- This cheque can be encashed at the bank without any trouble.
- It can either be a bearer or an order cheque.
7] Anti-Dated Cheque
- The cheque which is given to the bank after the date that is mentioned on the cheque is called an anti-dated cheque.
- Such a cheque has a validity of 3 months from the date of the cheque.
8] Post-Dated Cheque
- If the cheque has a date that is yet to come, it is called a post dated cheque.
- The bank will not accept this cheque before the date of the cheque.
9] Stale Cheque
- The cheque that is given to the bank after 3 months of the date on the cheque is called a Stale Cheque.
- The bank will not accept such cheques.
If you have queries or suggestions, please leave a comment.