Withdrawing money through a cheque is a simple task yet requires accuracy. Nowadays, people rarely withdraw money through cheques as digital banking has stormed every section of this era. There are various ways through which one can withdraw funds from their account such as ATM, withdrawal form, peer-to-peer payment service, etc. However, withdrawing through a cheque still has its advantages as it can be used for larger amount of money. Different banks have different withdrawal limit. There are also different types of cheques. In this article, we will discuss how to fill cheques for different purposes and the process of withdrawing. For this, you need to visit the bank during the working hours. The working hours of major banks in India are slightly similar. For example, ICICI bank timing is from 9:30 am to 4:30 am.
Different types of cheques
Bearer cheque:
A bearer cheque is a type of check that is use to pay anyone who holds or “bears” the cheque. Unlike other cheques, it doesn’t have any specifically name of a person or entity. This means that anyone who has a bearer cheque can cash or deposit it. The usage of bearer cheques has decreased as they can be easily stolen or misused.
How to fill a bearer cheque:
Following are some the key steps on how to fill cheque:
- First, you will see a space at the top right corner of the cheque leaf which is provide for the date. Fill it in the format “DD/MM/YYYY.
- Do not fill the payee line because bearer cheques are not made out to a specific payee, so there’s no need for it.
- Next, write the numerical value of the amount you want to withdraw or transfer.
- Write out the amount in words on the line below the numerical amount followed by the word “only”.
- Put your signature on the bottom right corner of the cheque leaf. Your signature should match the signature you have on record with the bank.
- You can also write a brief note or description of the purpose of the cheque in the memo or description field. This is optional.
Order cheque
An order cheque is a type of check which is used to pay only a specific person whose name is written on the cheque leaf. This means that the person named on the cheque, known as the payee, is the only one who can cash or deposit the cheque.
How to fill an order cheque
- As mentioned above, first write the current date on the “Date” in the format “DD/MM/YYYY” in the provided space.
- Write the full name of the person who is receiving the payment.
- Then, you need to write both the numerical value of the amount you want to withdraw or transfer and the also in words just below the line provided for the numerical value. The amount in word should be followed by the word ‘only’.
- Put your signature on the bottom right corner of the cheque leaf. Your signature can it be different from the one you used at the time of account opening,
Crossed cheque
A crossed cheque is a type of check that has two diagonal lines drawn across its face. This crossing indicates that the cheque can only be deposited into a bank account and cannot be cashed directly over the counter. There are two types of crossed cheques: general and special.
- General Crossing: for this, you have to draw two parallel lines across the top left corner of the cheque. This indicates that the cheque can only be deposited into a bank account, not directly cashed.
- Special Crossing: In addition to the two parallel lines, the name of a specific bank is written between the lines. This directs the bank to only accept the cheque for deposit into the bank account of the specified bank.
How to fill out a crossed cheque:
- In the same way as that of other cheques, write the current date on the “Date” in the format “DD/MM/YYYY.
- Write the name of the person who is receiving the payment in the payee section.
- On the line provided for the amount, write the numerical value of the amount you want to withdraw or transfer. And, just below that, write the amount in words as well.
- Then, you have to sign on the bottom right corner of the cheque leaf. Your signature should match the signature you have on record with the bank.
- If you want to cross the cheque, draw two diagonal lines across the top left corner. You can also write “General Crossing” or the name of a specific bank if you want to do a special crossing.
Post-dated cheque:
A post-dated cheque is a check that is written with a date in the future. In other words, the date on the cheque is later than the current date. This type of cheque cannot be cashed or deposited until the date written on it. People often use post-dated cheques to ensure that funds are only withdrawn from their account on a specific future date.
How to fill out a post-dated cheque:
- The only difference in the steps to fill out a post dated cheque is the date. Write a future date on the “Date” line located at the top right corner of the cheque. This is the date when the cheque can be cashed or deposited.
- The rest of the steps are just the same as that of other types of cheque.
Self cheque:
A self-cheque is a type of check that is written by the account holder to themselves. In other words, the payee name is the same as the account holder’s name. Self-cheques are commonly used when individuals want to withdraw cash from their own bank account or transfer funds between their own accounts.
How to fill out a self cheque
- Fill out the date and other details as you do for other cheques except the payee section.
- In the payee section, write “self”.
Stale cheque
A cheque becomes a stale cheque when it is presented for payment after a certain period of time after the issuance. According to RBI rules, a cheque becomes a stale cheque after 90 days of its issuance.
Traveller’s cheque
A traveller’s cheque is a preprinted, fixed-amount check that is widely used while travelling. It is considered as a secure and convenient form of payment as they are designed with security features such as signatures, watermarks, and other anti-fraud measures. They can be replaced if lost or stolen, making them a more secure option than cash.
These cheques are issued by financial institutions and come with certain security features that make them a safer alternative to carrying large amounts of cash.
