Kinds of Cheques

Cheques can be classified into the following kinds


1) Mutilated Cheque --- 



            A cheque which is cut into many pieces is called Mutilated Cheque. The drawer bank should see I honoring a cheque, whether it is Mutilated, canceled or torn. If the cheque is torn into two or many pieces, it should be returned with the remark 'mutilated cheque'. If he is satisfied that the Mutilated Cheque gets the original shape of the instrument, he may accept the cheque.



2) Post-dated cheque --- 


                   A drawer of a cheque gives the date in the cheque later or after the date on which it is drawn. It is known as a Post-dated cheque. The Banker must accept the Post-dated cheque only after the ostensible date given on the cheque. If he accepts before, he has to face many consequences.


3)  Stale Cheque or Out-dated cheque --

                    A cheque to be honored, it has to be presented within 6 months from the date of the cheque. If the cheque is presented for payment beyond the 6 months, it is said to be the Stale or Out-dated cheque. However, an Out-dated or Stale Cheque may be accepted by the banker for payment if the drawer/customer gives consent to make the payment. Such consent is subject to the period of limitation, which is 3 years. In other words, the drawer of the cheque has to give his consent within 3 years. The period of limitation is 6 years in England.



4) Ante-dated cheque --


        A drawer while drawing cheque gives the date in that cheque prior to the date on which it is drawn (prior to the date means backdate). It is called Ante-dated cheque. A banker can accept such cheque if it does not exceed 6 months period.