What is the check? How many types of checks?

Regardless of the empire of online banking, it is never possible to completely change some of the bank's own rules. One of the main issues in that rule or object is check. What is the check? How many types of checks? Rules for writing checks.

Today in this article we will discuss, what is this check, what kind of check it is, and the proper rules for writing checks.

What is a check?

Basically, a check is a financial document.

This allows a person to pay a certain amount of money from his specific bank account to another person or company's account. And, the check has to be issued or written in the name of the person or company to whom the remittance order is given to the bank.

Through this check, almost all the banks complete the transaction of money in a safe, secure and convenient manner.

It serves as a safe alternative.

Since the use of hard cash is not involved in money transactions using checks, the risk of loss or theft is much less. And, these checks are like the backbone of the banking world. Many people in the country still transact money through checks. Typically, each check contains a check number, IFSC code, and MICR.

Hopefully, you understand what a check is or what a check means.

How many types of checks and what are they?

A bank has different types of checks. However, how you use the check depends entirely on you and the person or company to whom you are sending money.

In this case, you are the check drawee, and the person to whom you want to send money is the payee. And, based on these essentials, we see the use of different types of checks in our country.

They are-

1. Bearer check:

This type of check is paid directly to the person carrying the check. These checks can be delivered to the recipient through delivery. That is, if the check is taken to the bank, you will be paid directly.

Here, the bank does not need any approval from the issuer of the check to pay the person. And the easiest way to identify this check is to have the word 'or bearer' written on it.

2. Order check

The words ‘or bearer’ in order checks are discarded. These checks agree to pay only to the person in whose name the check is written.

Also, before making a payment from the bank, the bank pays only after looking at its background to verify the identity of the check drawer.

3. Crossed check:

You will see two sloping parallel lines with the word ‘a / c payee written on the top left of this type of check. These lines confirm that payment must be made in the name of the person in whose name the check is written. That is, no third party will receive this money in any way.

Because, in these types of checks, the bank account number of the recipient has to be added along with the name of the recipient. And, the money is sent directly to the bank account number given by the recipient goes directly. Because these checks are relatively secure; Here it is possible to send only to the bank account number of the recipient.

4. Open check:

An open check is basically the opposite of crossed checks.

The money from these open checks can be withdrawn from any bank and the person carrying these checks has to pay. These types of checks are easily transferable from the original recipient (the actual recipient of the payment) to another recipient.

However, here the issuer has to give his signature on both the front and back of the check.

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