Bearer Cheque is the cheque issued by the bank to the account holder, which can withdraw the money of the account Holder or any of its representatives who are checked in the bank.
Even though the country has grown in mobile banking, internet banking, UPI or Bhim app or any other way, transactions have increased rapidly. But, there has been a significant increase in the transaction by cheque. It is noteworthy that most businesses use cheques for large sums of money from the bank. Some people cut the account payee cheque, some bearer cheques. We are telling you today what is bearer check? And how does it work?
What’s Bearer Check . What is Bearer Cheque?
Bearer Cheque is the cheque issued by the bank to the account holder, which can withdraw the money of the account Holder or any of its representatives who are checked in the bank. Interestingly, this cheque does not even require a signature in the back part. Only by imposing cheques can the money be withdrawn from the bank. Bearer cheque is also called carrier cheque.
For your information, tell us that if you have a savings account in the bank, you are issued a bearer cheque book on behalf of that bank. In which the first line on each cheque leaves a few places after the word Pay…… or Bearer remains written. See the picture here…
You don’t need to enter someone’s name in the empty space to issue Bearer Cheque. Rather you can do something like that..
If you have to pay cash from the cheque, you should write ‘Self’ in the empty space.
If someone else has to pay a cheque for cash payment, you should write ‘Pay to the order of cash’ in the empty space.
There is always a risk with Bearer Cheque that if it is the hand of another person, he can also withdraw the amount recorded in it.
Note – Reserve Bank of India has changed its high value cheque clearing rules a few days back. Under which banks have now started the ‘ Positive Pay system ‘ system. Therefore, now, if one has made it mandatory to produce an identity-substantiated document to receive any payment of more than Rs. 50, 000. In this situation, he will now have to give his pan number.
How to write a bearer cheque?
It is very simple to a bearer cheque. The below image will show you what are the field in a cheque.
- Date: You should mention the date on which the cheque is issued.
- Pay: As the bearer cheque does not contain the name of the bearer, the issuer must write ‘self’ or ‘pay to the order of cash’
- Amount: You have to mention the amount of money you want to pay in the rupees section.
- Amount in Number: Mention the amount of money in numbers and put ‘/- ‘ mark at the end
- Signature: Finally sign on the space provided above the Authorized Signatory.
What is Bearer cheque withdrawal limit?
There is no such specific withdrawal limit on bearer cheque. In case the amount is above 50,000 the bank will verify the identity of the person before handling the cash amount.
