India’s financial and economic sectors have seen swift and profound transformations. The advent of almost instantaneous digital transactions, like UPI, has resulted in the widespread adoption and utilisation of online money transfers. However, a lot of people still make some payments using their bank cheque book
What is a cheque book?
A cheque book is a booklet issued by banks to savings account holders in India. It is a paper instrument that individuals can use to make payments or transfer funds. Cheques print the account details of the account holder on all its leaflets so that they become a valid form of payment. An account holder who receives a cheque book from their bank or financial institution is called a cheque book holder.
Different Parties Involved
- Cheque drawer: The individual who writes the cheque is known as the drawer. They write the amount and sign, thereby asking their bank to pay the amount.
- Cheque drawee: The cheque drawee is the bank that must process the paper and complete the transaction on the drawer’s behalf.
- Cheque payee: The beneficiary to whom the cheque drawer pays the payment is known as the payee.
- Cheque endorser: Any of the three parties listed above becomes the endorser of the cheque when they transfer the right to receive the payment to another party.
- Cheque endorsee: The party to whom the rights to receive the cheque have been transferred is known as the cheque endorsee.
How to Write a Cheque
Steps to writing a cheque:
- You must include the payee’s name in the pay section. Make sure you do it properly. You should draw a line in the left-over space so that no changes can be made to the title.
- Below that, write the amount to be debited in words and draw a line in the left-over space.
- On the right side of the cheque, write the amount in numbers and draw a line after the amount so that no one can make any changes.
- For the date column, write the date on which you want the money to be debited or transferred
- Make sure that the amount is written in words and numbers as the cheque will be returned if they are not.
- Use your authorised signature to sign off on the cheque.
How To Apply for Bank Cheque Book
When you open a new account, your bank will send you a cheque book along with the new account kit. If you require another one, you will have to request it. You can apply online by visiting your bank’s website or mobile application, or through internet banking. You can also visit your nearest branch or contact a bank representative who will help you through the process.
A bank cheque book is an essential tool for managing financial transactions, providing a tangible record of payments and ensuring secure fund transfers. In the digital age, e-KYC (Electronic Know Your Customer) has become integral in streamlining account verification processes. e-KYC full form refers to the electronic version of traditional KYC procedures, allowing for faster and more efficient customer identification. Combining the convenience of a bank cheque book with the speed of e-KYC, modern banking offers a seamless experience for individuals and businesses alike. Stay on top of your finances with the traditional reliability of a cheque book and the innovative efficiency of e-KYC
CONCLUSION
Many people still use their bank cheque book to complete certain payments. Despite the new and popular forms of digital payment, cheques are still a staple in the financial landscape. They offer consumers a dependable and safe means of transferring money.
Due to its stability and authenticity, it is still a major method of payment. Despite several digital options available, cheques are in the banking sector.