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How Long is a Cheque Valid For?

A cheque is a credit instrument How Long is a Cheque Valid For? The instruments that are not actual money but served as money and perform all the functions of money are called credit instruments.

A cheque is a written order by which the customer requires his bank to repay the money deposited with him, or in other words. A cheque is a document used to withdraw money from the bank. 

Entries or elements of a cheque 

  • Name of the bank
  • Date 
  • Cheque number 
  • Nature of account
  • Account number 
  • Word ‘ bearer’ or ‘order.’
  • Payee
  • Amount in figures 
  • Amount in words 
  • Signature of the account holder.

Main parties of cheque 

There are three parties included in the cheque 

  1. Drawer of cheque (account holder).
  2. The drawee of the cheque (bank).
  3. payee(who receives the amount.)

How long is a cheque valid for?

The bank must honor the cheque and make the payment. But if it has been in circulation for a bit of time, then the bank does not make its payment How Long is a Cheque Valid For? The cheque is valid for six months means half a year. A bank does not make payment of the cheque after 6 months according to the date written on me, which is the date of issuance. Bankers refuse to give the price of the cheque brought to the bank for payment after six months of its distribution. So if you forget about it the best way is to write a new cheque or if another person gives it to you. You have to ask them to write another cheque for you so that the bank can make payment.

How to write a cheque?

  1. First of all, write the date on the dateline present on the top right corner of the cheque.
  2. Enter the name of the payee.
  3. Write an amount you want to withdraw (in numbers).
  4. Write an amount in words.
  5. Fill out the memo, which represents for what purpose the cheque is drawn.
  6. Sign the cheque on the signature line at the bottom of the cheque.

Types of cheque

The cheque can be divided into the following kinds according to its importance and functions. 

Main types 

Bearer cheque 

It is a cheque that does not contain any restriction, and any person can withdraw money from the bank without giving any identification to the bank.

 Order cheque 

Banks demand identification from the payee to make the cheque payment to clear the name written on it. Only the payee can receive the money from the order cheque. 

Crossed cheque

Two transverse parallel lines are drawn on the face of the cheque. This cheque is not paid in terms of money. Firstly the amount of this cheque is transferred to the account on the page,e, and for the withdrawal of funds, the payee has to draw a new cheque. The crossing can be canceled, and only the drawer has the authority to do so. This cheque is much safer as compared to bearer and order cheque. 

Other types 

Lost cheque

If the account holder lost his cheque and reports to the bank, then it will be considered a lost cheque.

 fraudulent/ forged cheque 

If the person who has no account in the bank issues a cheque or the cheque issue on a closed account, then it will consider as a forged cheque, and the bank will not accept it. 

Post-dated cheque 

It is a cheque that bears a date later than the date of issue. It is considered a bill of exchange.

Anti dated cheque 

If the cheque is not encashed according to the date written on it, but six months has not expired from the date of issuing, it is called an anti-dated cheque.

Outdated/stale cheque

After the expiry of 6 months from the date of issue, the cheque will consider outdated.

Traveler’s cheque

The people who travel from one place to another or from one country to another use this cheque. These were issued by the bank on which a specified amount was written. The holder can withdraw money from any branch of a selected bank up to the amount reported on it.

Blank cheque

It contains no description of any date or name. It means the drawer only signs the cheque. 

Open cheque

The cheque which not cross called an open cheque. It may be bearer or order.

Marked cheque

If there a spot of ink or color on the cheque, it will consider a marked cheque. If the mark of ink or dye is light, then the bank makes its payment Long is a Cheque Valid For? Otherwise the bank refuses to take it. 

Dishonored cheque

If the bank does not accept any cheque for making the payment, it called a dishonored cheque.

Honored cheque 

The cheque accepts by the bank for payment.

Mutilated cheque 

If the cheque torn into pieces or seems to have torn will not be acceptable. However, it can pay after getting confirmation in writing from the drawer.

Washed cheque 

If the description of amount, date, or signature not clear on it due to was,h, then it called a washed cheque.

Plain cheque 

This a cheque on which no particular information written.

Foreign cheque

It issue against the transaction between two different countries for the receipt and payment.

Also read: How Often Can I Donate Blood.

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