Wondering how to define a chequebook? A chequebook is a collection of cheque leaf lets that is used to make fund transfers. It is a reliable tool for your payment needs and helps you track and manage your finances.
Despite the growth of digital payments, cheques offer physical proof of transactions, providing you with control and security. To get more information about chequebooks and how you can get one, read on.
Table of Contents
Chequebook – Meaning and Key Facts
A chequebook is a small booklet filled with blank cheques. You can use these cheques to make payments instead of cash. Using a chequebook to issue cheques is helpful for larger payments and allows you to avoid carrying cash.
Here are some key facts about bank chequebooks:
- Cheques are available to you when you have savings or current accounts
- You need to write the correct amount on a cheque to enhance transaction security
- Once a payee is specified, it becomes unalterable, ensuring clarity in payment
- A cheque serves as a binding, unconditional order rather than a casual bank request
- After six months, cheques are classified as stale but retain their legal validity
- Cheques older than six months from the date of issuance may still be honoured by some banks
- Cheques that bear a signature but lack a written amount are susceptible to misuse
- For a cheque to be valid, you must sign it and write the correct date
Also Read: What Are Cheque Bounce Charges
Chequebook Elements
Before writing a cheque, you need to understand the key components to ensure a smooth transaction. Here’s an overview of the information in chequebooks:
- Date
The date on a cheque shows when you issued it, serving as a timestamp that indicates its validity period.
- Amount
In the amount field, you clearly spell out the sum of money you want to transfer. Additionally, you need to write in numeric also. Doing so ensures clarity and prevents any confusion about the payment.
- Payee
The payee is the recipient of the payment. This detail ensures that the money goes to the correct individual or entity.
- Signature
Your signature acts as a personal authentication mark. It verifies the legitimacy of your cheque and confirms that you authorised the transaction. This aspect adds an important layer of security.
Also Read: 5 Importnat Facts About Account Payee Cheque
Types of Cheques
When dealing with cheques, you need to understand the different types. Here’s a quick overview:
- Bearer Cheque
A bearer cheque allows anyone holding it to cash it. This makes it useful for simple transactions but can be risky as it is easy to misuse.
- Order Cheque
An order cheque is payable only to a specified person or their order. This adds security by ensuring only the intended recipient can access the funds.
- Crossed Cheque
A crossed cheque requires funds to be deposited into a bank account. This offers extra security by preventing over-the-counter encashment.
- Open Cheque
An open cheque allows the bearer to withdraw cash directly from the bank. This offers flexibility but less control than other types.
- Post-Dated Cheque
A post-dated cheque specifies a future date for encashment, allowing for planned deferred payments.
- Stale Cheque
This is one issued more than six months ago and may still be honoured by the bank but often undergo additional scrutiny.
- Traveller’s Cheque
This cheque is a secure alternative to cash for international transactions, reducing the risk of theft or loss.
- Self-Cheque
You can write a self-cheque to yourself to withdraw personal funds or transfer money between personal accounts.
- Banker’s Cheque
This cheque is issued by the bank, guaranteeing payment and providing a secure option for large transactions.
Also Read: Top 5 Cheque Leaf Facts
Application Process for a Bank Chequebook
The chequebook application processes of banks vary. However, here are the general avenues that you can use to submit it:
- Mobile App: Log in to your bank’s mobile app and request a new chequebook easily through the available options
- Visit Your Nearest Branch: You can visit your nearest bank branch to request a new chequebook in person
- Through the Bank’s Website: Access your bank’s internet banking portal to request a chequebook; the bank will mail it to your registered address
- Customer Support: Call the bank’s customer support team to request a new chequebook through customer service
- Write a Request Letter: You can write a formal chequebook application or request letter to your bank asking them to issue one to you
- ATM: Visit the bank’s ATM and request a new chequebook through the available options; the bank will send it to your registered address
Chequebooks are important when applying for personal loans. They prove your banking relationship and financial stability. They also show lenders that you manage your finances well. Fibe’s Instant Personal Loan offers a fast, convenient loan option with minimal documentation.
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FAQs on Chequebook
Can I request a chequebook online?
Yes, you can request a bank chequebook online. You can do so via your bank’s website or mobile app.
How many cheques are there in a standard chequebook?
A standard bank chequebook contains up to 50 cheques.
Can I use a chequebook to pay for online purchases?
You typically cannot use a chequebook for online purchases. Most merchants prefer credit/debit card payments and do not accept physical cheques.
Can I get a chequebook with my business name on it?
Yes, you can get a chequebook with your business name if you have a business account. You can request a chequebook that displays your business name and other relevant details.
How do I update the details on my chequebook?
To update your chequebook details, you can contact your bank through a branch visit, customer service or online banking. The bank will issue a new chequebook with the updated information.
