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What is maximum amount payable by bearer cheque by saving bank account?
Wiki User
∙ 13y ago
It depends upon the bank type. Just visit your bank.
Wiki User
∙ 13y ago
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What does payable to bearer mean on checks?
It means that, money will be paid out to the person who is holding (bearer) the check. For ex: If I owe you Rs. 10,000/- and give you a bearer cheque of my bank account with ICICI Bank, all you have to do is, visit your nearest ICICI Bank branch and then submit the cheque for payment. The bank will ask for your identity proof to verify that you are indeed the payee for the cheque and if they are satisfied, they will give you the cash right away. You, the person carrying the cheque will be considered the bearer of the cheque.
Can cross cheque be deposited in bearer account?
A crossed cheque must be banked. If the or bearer is not also crossed/deleted; then, strictly speaking, the cheque can be banked into the holder (bearer) of the cheque [and the bank teller will write the bank account number into which the cheque is being deposited].Some countries will only let the cheque be deposited into the bank account of the person/business named on the cheque (even if the or bearer is not crossed/deleted).
What is difference between cross check and bearer check?
A Bearer cheque is one which the bearer (the person to whom the cheque was issued) can present at the bank on which the cheque was given and receive the cash For ex: If I give you a cheque on my ICICI Bank account in Chennai to you, you can take that cheque to any ICICI bank branch in Chennai and collect the cash that is written on it (if i have sufficient balance in my account) whereas a crossed cheque is one that cannot be cashed as said above. It can only be deposited into the payees (your) bank account
How do you cash a cheque?
Submit it to the Teller in a bank where you have a bank account. If it is a bearer cheque and you have an account in the same bank as that of the cheque, you will be paid cash immediately. If it is an account payee cheque, money will get credited to your account in the next 2-3 days
What is the difference between demand draft and crossed demand draft?
Explanation 1:A Demand Draft is a banking instrument . In any case, if it is not crossed, it is bearer, meaning thereby that the bearer, anyone who is presenting it to the bank can get it en cashed . However, if we cross it, it is two parallel lines on the DD's top left, it becomes crossed . It means that the benefit of that DD can be taken only after getting it credited to the addressee's account only. By crossing the bearer ship goes, so the one who has signed the cheque or given the DD is very sure that it goes to the particular person and the particular person can be traced because it first went to his/her account . That is why a crossed draft is also chalked "Account payee only".Explanation 2:If you cross a bank draft only an account holder can en cash the same. It is generally safer than the normal bank draft.Assume you take a draft for 100 dollars in favour of Mr. ABCD. If you don't cross it, Mr. ABCD can en cash it without having a bank account. However if you cross it the money will go only to a bank account. So at any point of time you can prove that you had indeed paid to Mr. ABCD. Another added benefit is in case the draft is lost, any body with the same name can claim the cash.Thus you get two benefits : Added security as well as a proof.Q: Can a draft not issued as cross by the issuing bank be crossed later?A: Yes. Under Section 125 of the NEGOTIABLE INSTRUMENTS ACT, 1881, a holder may cross it.Further more, such holder may cross generally, specially and also add words "not negotiable".A demand draft is always an order instrument. The definition of a demand draft under Section 85A of the Indian Negotiable Instrument Act, 1881, makes it clear that a demand draft is an order instrument. In view of this, issue of a demand draft payable to a bearer is STRICTLY PROHIBITED under Section 31 of the Reserve Bank of India Act. If a demand draft is made payable to a bearer it becomes like a currency note and In India only RBI is empowered to issue a currency note. Hence a DD is always made payable to order of a person and no DD is issued payable to bearer.Crossing is an indication to the banker that it should be paid only through a banker. In other words, cash will not be paid across the counter. The payment will be made through an account of the payee. The main purpose of a crossing is to ensure that the amount of the cheque is paid to the correct payee or endoresee and thus helps in preventing payment to a wrongful person. Thus the purpose of crossing is to ensure safety of the amount. It thus prevents wrongful persons from getting the amout of the cheque.IF the demand draft is not crossed, payment will be made by the banker subject to proper identification of the payee. If the DD is crossed, the amount of the DD will be credited to the beneficiary's acccount.
What is bearer cheque?
Cross cheque means that it can only be paid into a bank account and cannot be paid in cash over the counter. A bearer cheque is made payable to the bearer i.e. it is payable to the person who presents it to the bank for encashment
What is a bearer bond?
A bearer bond is a negotiable loan instrument which is payable to its holder by the issuer according to preset conditions.
What is a bank of issue?
A bank of issue is a bank which issues its own notes payable to the bearer.
What is a bad check?
A bad check is a check written against a bank account with insufficient funds to pay the bearer the amount of the check.
What does payable to bearer mean on checks?
It means that, money will be paid out to the person who is holding (bearer) the check. For ex: If I owe you Rs. 10,000/- and give you a bearer cheque of my bank account with ICICI Bank, all you have to do is, visit your nearest ICICI Bank branch and then submit the cheque for payment. The bank will ask for your identity proof to verify that you are indeed the payee for the cheque and if they are satisfied, they will give you the cash right away. You, the person carrying the cheque will be considered the bearer of the cheque.
Difference between order cheque bearer cheque?
A person holding the cheque can collect the amount if it is a bearer cheque. The payee (i.e. the person in whose favour the cheque is issued) only or his authorized person only can collect the amount of the cheque if it is an order cheque
Which cheque works just like a currency note?
Currency notes are promissory notes payable to the bearer on demand.section 31 of RBI ACT provides that no one other than RBI or Central Govt. Can issue a promissory note or bill of exchange payable to bearer on demand...hence no cheque works just as a currency note.
Can cross cheque be deposited in bearer account?
A crossed cheque must be banked. If the or bearer is not also crossed/deleted; then, strictly speaking, the cheque can be banked into the holder (bearer) of the cheque [and the bank teller will write the bank account number into which the cheque is being deposited].Some countries will only let the cheque be deposited into the bank account of the person/business named on the cheque (even if the or bearer is not crossed/deleted).
What is the sec - 31 of the RBI act?
31. Issue of demand bills and notes.- 2[ (1) ] No person in 3[ India] other than the Bank or, as expressly authorized by this Act, the Central Government shall draw, accept, make or issue any bill of exchange, hundi, promissory note or engagement for the payment of money payable to bearer on demand, or borrow, owe or take up any sum or sums of money on the bills, hundis or notes payable to bearer on demand of any such person: Provided that cheques or drafts, including hundis, payable to bearer on demand or otherwise may be drawn on a person' s account with a banker, shroff or agent. (2) 4[ Notwithstanding anything contained in the Negotiable Instruments Act, 1881 (26 of 1881 ), no person in 3[ India] other than the Bank or, as expressly authorized by this Act, the Central Government shall make or issue any promissory note expressed to be payable to the bearer of the instrument.]
What is Currency notes?
A currency note is a banknote -- a type of negotiable instrument known as a promissory note, made by a bank, payable to the bearer on demand.
What are the requisites of negotiable promissory note?
1. it must be in writing signed by the maker. 2. it must contain an unconditional promise to pay a certain sum in money. 3. it must be payable on demand, or at fixed or determinable period of time. 4. must be payable to order or bearer.
Is a written check clearly intended for the party receiving the check but missing the receiving party's name still valid?
UCC 3-309(a)(2)-- check is treated as "payable to bearer."
