You might not know... There are not one or two but 7 types of cheques, know when each one is used.

A cheque is such a thing through which you order your bank to withdraw the amount written in the cheque and give it to the person giving the cheque. This is exactly the work of a cheque, but with small changes, these cheques are used in different ways. There are not one or two but 7 types of cheques, most of which are known to very few people.

It is written on a bearer cheque that the money written on it should be given to this person or to whoever brings this cheque, i.e. the bearer. Whoever has this cheque, the amount written on it will be given to that person by the bank. Before paying the amount of this cheque, the banks do not even check whether the cheque belongs to that person or he has stolen it from someone. This is because these cheques can be transferred to anyone.

These cheques are opposite to bearer cheques. In these, the word or bearer written on the cheque is crossed out or canceled. The amount written on this cheque can be given only to the person whose name is written on it. Before making payment against an order cheque, the bank does a little background check of the person whose name is on the cheque. The cheque is paid by the banks only after being completely satisfied.

Under a cross cheque, two parallel lines are drawn on the top left corner of the cheque. The special thing about this cheque is that you cannot go to a bank and withdraw cash from it. Crossing a cheque ensures that the payment will be made only in the bank account. This payment can be made to the person whose name is written on the cheque. That person can also endorse the cheque to someone, for which it becomes necessary for him to sign on the back of the cheque. When the person issuing the cheque wants the money to be paid to a particular bank account of the person to whom the cheque is to be issued, he can write the name of the bank by drawing two parallel lines in the blank space at the bottom. This cheque is considered to be the safest because you decide in advance who will be paid, how, and from where.

This type of cheque is used for use at a future date. This type of cheque is used in business or for any work in which money has to be paid at a later date. This type of cheque can be used for the maintenance of various societies. Sometimes such cheques are also used for making payments at a later date in business transactions.

A cheque whose validity has expired 3 months before the cheque is issued is called a stale cheque.

Traveler's cheques are used while going on holidays abroad. They keep less cash with them and through these cheques, they can withdraw cash from a bank located at any location in another country. Such cheques never expire and can be used for future trips.

If a person writes Cancelled on the cheque and draws a line above and below Cancelled joining both the corners of the cheque, then it is considered a canceled cheque. Such cheques are used to access your banking information. Often such cheques are used in KYC, which can only verify your information and not be used to withdraw any money.