The most secured type of cheque is an account payee cheque. Such cheques are issued in the name of the payee and such cheques cannot be encashed, i.e. the bank can only transfer the amount mentioned on the cheque in the bank account of the payee.
Let’s know more about an Account Payee Cheque in this post.
Have a look at the above Account Payee Cheque Sample.
Features of an Account Payee Cheque
The following are the features and benefits of using an account payee cheque:
- Issued in the name of the payee
- No-one else can draw an account payee cheque
- Highly secure than a bearer’s cheque
- Cannot be encashed
- Amount can only be transferred from the issuer’s account to the payee account
How to Write an Account Payee Cheque?
You need to mention the following details on an account payee cheque:
At the front of the Account Payee Cheque:
- Payee Name
- Amount to be paid (words & figures)
- Cross the cheque by drawing 2 parallel lines at the top left corner & writing Account Payee in between the lines
Cancel the Bearer option
Please make sure to put your signature at the Account Payee Cheque back side as well.
Account Payee Cheque: FAQs
It usually takes 2 days to clear and account payee cheque.
An account payee cheque is valid for 3 months from the date mentioned on the cheque.
An account payee cheque can be paid to the payee’s account anytime within 3 months of issuing the cheque.
The issuer must sign at the back side of an account payee cheque along with signing at the front as well.