About Us
    • 24x7 Personal Loan Notification
    • NEO RuPay Credit Card Notification

    • Axis Bank is now on WhatsApp !

      Send us a 'Hi' on 7036165000 for all your banking needs

      SIGN-UP

Table of contents

    Quick Summary

    Have a bank account? Then you must be familiar with the meaning of a cheque, which is more than just a leaflet.

    Cheques offer a secure and efficient way to transfer funds. But did you know there are different types of cheques, and each has its own usage?

    Understanding the different types of cheques can help you manage your finances better. It can also ensure that you are using the right one for your needs. But first, let us understand the basics of what is a bank cheque.

    What is a cheque?

    Here is a simple cheque definition - A written, dated, signed, and negotiable instrument that directs a bank to pay a specific amount of money to the bearer or named recipient. It is considered a written order for various transactions, such as paying bills, transferring funds, and withdrawing cash from your account.

    Types of cheques

    Let us have a look at the commonly available types of cheques -

    Types of chequesMeaningExample
    Bearer chequeA bearer cheque is payable to the person holding it. It can be transferred from one person to another without any endorsement.You write a cheque for ₹10,000 payable to "Bearer." Anyone holding the cheque can encash it at the bank.
    Order chequeAn order cheque is payable only to the person whose name is mentioned on the cheque or to anyone endorsed by that person.You write a cheque for ₹15,000 payable to "Mr. A or order." Only Mr. A can cash it.
    If Mr. A endorses the cheque in favour of Mr. B, Mr. B can cash it.
    Crossed chequeA crossed cheque has two parallel lines in the top-left corner or across the cheque. It can only be deposited directly into a bank account and cannot be immediately cashed.You write a cheque for ₹20,000 to "Mr. A" and cross it.
    Mr. A must deposit it into his bank account. The funds would be credited to Mr. A’s bank account.
    Open chequeAn open cheque is not crossed and can be cashed at any bank.You write an open cheque for ₹25,000 to "Mr. B."
    Mr. B can cash it at any bank.
    Post-dated chequeA post-dated cheque is a payment instruction dated for a future date. It cannot be cashed or deposited until the specified date.You write a cheque dated for 15th July 2026 for ₹30,000 to "Mr. A."
    Mr. A can only encash or deposit it after 15th July 2026.
    Stale chequeA stale cheque is a bank document that has not been presented for payment within 3 months of its issuance. After this period, it becomes invalid.You issue a cheque on 1st January 2024, but Mr. B tries to cash it on 5th April 2024.
    The cheque is now stale and cannot be processed.
    Traveller’s chequeA traveller’s cheque is a pre-printed, fixed-amount cheque designed for travellers. It is used to exchange for local currency without the risk of carrying cash. Traveller's cheques do not expire and can be used for future trips.You buy traveller’s cheques worth ₹50,000 before going on an international trip.
    You can cash these cheques at your destination.
    Self-chequeA self-cheque is drawn in the name of the account holder. It is used to demand payment and withdraw money from your own account.You write a cheque to "Self" for ₹10,000 to withdraw cash from your own account.
    Banker’s chequeA banker’s cheque is issued by the bank itself, guaranteeing the payment.You need to pay ₹1,00,000 to a supplier.
    You get a banker’s cheque from your bank to ensure the payment is guaranteed.

    How does one fill a cheque?

    There are different parts of a cheque, and to fill it, you will have to fill in the different parts of the financial instrument. These parts are as follows –

    • Date: Specifies the date when the cheque is drawn. It is written in DD/MM/YYYY format.
    • Payee's name: This means the name of the person or entity to whom the cheque is to be paid.
    • Amount in numbers: You will need to enter the amount in the provided box in numeric format.
    • Amount in words: The amount should be mentioned in words too, to double-check for mistakes.
    • Signature: Sign the cheque in the bottom right corner.

    What is the cheque number?

    A cheque number is a unique six-digit number printed on the cheque, used to identify and track the cheque. This number is essential for record-keeping and ensuring your transaction is traceable.

    Number of parties involved with a cheque

    There are three main parties involved in a cheque. They are –

    • Drawer: The person who writes the cheque.
    • Drawee: The bank on which the cheque is drawn.
    • Payee: The person to whom the cheque is payable.

    Elements of cheques

    A cheque contains several elements. These are as follows –

    • Date: It verifies the cheque's validity and determines its validity period.
    • Payee: The recipient of the funds.
    • Amount: It is mentioned both in numbers and words to prevent fraud.
    • Signature: It authorises the cheque.

    How to cancel a cheque?

    To cancel a cheque, draw two parallel lines across the cheque and write "CANCELLED" between them. This prevents the cheque from being used for a transaction.

    What is a cheque leaf?

    A cheque leaf is a single cheque from your chequebook. It contains all the necessary fields to complete a cheque transaction.

    Advantages of cheques

    Some of the advantages of cheques are as follows –

    • Cheques are secure ways of paying someone that are not prone to the risk of loss due to theft.
    • With cheque payments, you can easily establish a trail of payments, making tracking money easy.
    • Cheques do not involve any transaction fee, making them cost-effective.
    • Cheques are accepted across merchants, vendors, and all establishments, simplifying payments.
    • When it comes to high-value transactions, cheques become a preferred mode since they have no maximum transaction limit.

    So, flip out and check the cheque book type you have, then draw a suitable cheque. With Axis Bank, enjoy a range of services to make transactions and cheque clearance smooth and hassle-free.

    Also Read: Guide to the cash deposit limit in a savings account

    Frequently Asked Questions

    1. What is a cheque number?

    A cheque number is a unique six-digit number printed on the cheque, used to identify and track the cheque.

    2. When will banks refuse to make the cheque payment?

    Banks may refuse to pay if the cheque is post-dated, stale, lacks sufficient funds, or contains errors like mismatched signatures.

    3. Is it possible to use a cancelled cheque several times?

    No, a cancelled cheque is usually provided as proof of your bank account details and cannot be used for transactions.

    4. How long are cheques valid for?

    Cheques are valid for three months from the date of issuance. After this period, they become stale and cannot be processed.

    5. How to fill a cheque deposit slip?

    • Account number: Write your account number.
    • Cheque number: Write the cheque number.
    • Payee name: Write your name.
    • Amount: Write the amount in numbers and words.
    • Date and signature: Provide the date and your signature.

    6. Why use a cheque?

    A cheque is a secure payment tool that helps in seamless payments across individuals and establishments. It can be easily tracked and helps complete high-value transactions easily.

    7. What is the process of a cheque?

    You can draw a cheque against an individual or an establishment, mentioning the date and amount. The tentative recipient deposits the cheque at the bank and the clearing process clears the funds.

    Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.

    Learning Hub

    Planning your next money move? Spend a minute here

    View more
    DCGC

    Copyright@ 2026 Axis Bank