What is an ORDER CHEQUE as i know types of cheques are account payee and bearer cheque?

Question

then please tell me what is an order cheque and waht is the process of it's transcation plzz answer me .THANK YOU

Answer 1

Whenever a drawer draws a cheque and make it payable in favour of a payee or to his/her order, it is called an order cheque. These cheques are transferable by just an endorsement by the payee on the back of the cheque, and remains a valid instrument under the Negotiable Instrument Act. These cheques are never crossed by the drawer while writing the cheque, hence are at risk on their physical loss. However, the payee remains at liberty to cross an order cheque - simply or specifically as an "a/c payee" to minimise the risk on its physical loss, but the cheque then becomes a crossed one and payable to the account of the payee only.

Important to note is the drawing of the cheque (its character) by the drawer originally. A drawer solely can draw an order cheque, to remain an order cheque through out till paid; however it can be converted into a crossed one by the payee anytime before its payment. But a cheque originally drawn as a crossed cheque by the drawer can "never" be converted into an order cheque by the payee, if any such attempt is made by the payee himself/herself, the cheque / instrument becomes invalid and is liable to be dishonoured by the bank.

There could be further if and buts; since the answer is becoming lengthy, I am stopping here. But hope basic concept gets clear.

Answer 2

Order Cheques

Answer 3

cheques can be drawn in many ways and the different ways have different meanings
bearer cheque is a direction to the banker to pay the amount mentioned in the cheque to anyone who tenders the cheque without bothering about his identity. That does not mean that bank will pay to anyone, if the cheque is drawn in favour of some organisation say , LIC of inida etc. If it is favouring any individual , the bank will pay the amount to anyone who tenders the cheque.
If it is crossed account payess, the bank should credit the amount only to the account of the beneficiary, not necessarily with the same bank, but to the account of the beneficiary with any bank.

Order cheque means that the words after the name in the payto column "bearer " is struck off and/or the words order is written.In that case it is an instruction to the bank to pay the amount of the cheque to the person mentioned in the cheque after identification or to anyone authorised by the person mentioned in the cheque, that too after verification. The bank will ask the person tendering order cheque to provide proof that the person is the same as mentioned in the cheque.

Answer 4

Normally cheques are payable to bearer.
If you delete bearer it is payable on order.
If you draw 2 lines ===========, it is bearer. Holder can NOT get cash. It can be paid through any a/c.
If you want cash, do not cross it.
If you want safety in transit, cross it.
Cheques fvg. Govt., Companies etc. are deemed cross. None can get cash for such instruments.