By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Investment SimplifiedInvestment Simplified
  • Tax
    • Popular Searches
    • What is Form 16?
    • Trademark Registration Fees
    • TDS Full Form
    • Ad Valorem Tax
    • How to Save Tax?
  • Aadhaar
    • Popular Searches
    • How to Book Aadhaar Card Appointment?
    • E-Aadhaar And It’s Benefits
    • What is a Masked Aadhaar?
    • ESign Aadhaar: A Complete Guide
    • Aadhaar Card Address Change
  • EPF
    • Popular Searches
    • EPFO Member Portal – Login, Registration
    • EPFO Establishment Search
    • Guide to Your EPFO Member Login
    • EPF Interest Rate
    • What Is UAN Activation?
  • PAN Card
    • Popular Searches
    • What is a PAN Card
    • NSDL PAN Card
    • UTI PAN
    • e-PAN Card
    • PAN Card Apply
  • Banking
    • Banks
      • Popular Searches
      • State Bank of India (SBI)
      • Bank of Baroda (BOB)
      • Canara Bank
      • Indian Bank
      • Bank of India (BOI)
    • Bank Timings
      • Popular Searches
      • Bank of Baroda Timings
      • IDBI Bank Timings
      • Union Bank Timings
      • Karnataka Bank Timings
      • Central Bank of India Timings
      • Canara Bank Timings
    • Mini Statement
      • Popular Searches
      • Axis Bank Mini Statement
      • HDFC Mini Statement
      • Bank of Baroda Mini Statement
      • Union Bank of India Mini Statement
      • SBI Mini Statement
    • Balance Enquiry
      • Popular Searches
      • Canara Bank Balance Enquiry by SMS, Missed Call, Netbanking
      • SBI Balance Enquiry
      • Union Bank of India Balance Enquiry Number
      • BOB Balance Enquiry
      • PNB Balance Check Number – Enquiry by SMS, Missed Call, Netbanking
    • NEFT
      • Popular Searches
      • HDFC NEFT
      • SBI NEFT
      • Axis Bank NEFT
      • ICICI Bank NEFT
      • Canara Bank NEFT
    • Net Banking
      • Popular Searches
      • HDFC Bank Net Banking
      • SBI Net Banking
      • ICICI Net Banking
      • Axis Bank Net Banking
      • IOB Net Banking
    • Customer Care
      • Popular Searches
      • Central Bank of India Customer Care Number
      • Bank of Baroda Customer Care – Missed Call and Toll Free Number
      • Bank of Maharashtra Customer Care
      • Punjab National Bank Customer Care Number – PNB Grievance Redressal
      • IOB Customer Care Number
    • UPI
      • Popular Searches
      • BHIM
      • Google Pay
      • BHIM SBI Pay
      • Union Bank UPI
      • HDFC UPI
    • Debit Card
      • Popular Searches
      • SBI Debit Card
      • HDFC Debit Card
      • PNB Debit Card
      • Axis Bank Debit Card
      • Kotak Debit Card
    • RTGS
      • Popular Searches
      • RTGS Process
      • SBI RTGS
      • ICICI Bank RTGS Form
      • Axis Bank RTGS Form
      • HDFC RTGS Form
    • IMPS
      • Popular Searches
      • IMPS Limit
      • IMPS vs. NEFT
      • IMPS vs. NEFT vs. RTGS
      • MMID
    • Cheque
      • Popular Searches
      • Types of Cheques
      • Blank Cheque
      • Cancelled Cheque – How to Write a Cancelled Cheque?
      • Account Payee Cheque
      • Banker’s Cheque
    • Bank Holidays
      • Popular Searches
      • Bank Holidays in June 2023
      • Bank Holidays in July 2023
      • Bank Holidays in August 2023
      • Bank Holidays in September 2023
      • Bank Holidays in October 2023
    • Mobile Banking
      • Popular Searches
      • SBI Mobile Banking
      • HDFC Mobile Banking
      • Bank of Baroda Mobile Banking
      • Indian Bank Mobile Banking
      • Canara Bank Mobile Banking
    • Passbook
      • Popular Searches
      • SBI Passbook
      • Union Bank Passbook
      • BOB Passbook
      • HDFC Passbook
      • Axis Bank Passbook
    • Demand Draft
      • Popular Searches
      • Demand Draft Validity
      • Demand Draft Form
  • Savings Account
    • Popular Searches
    • What is a savings account
    • SBI Savings Account
    • Bank of Baroda Saving Account
    • Bank of Maharashtra Saving Account
    • Central Bank of India Saving Account
  • Insurance
    • General Insurance
    • Car Insurance
    • Travel Insurance
    • Pension & Retirement
  • About Us
  • Contact
Reading: Banker’s Cheque
Share
Investment SimplifiedInvestment Simplified
Search
  • Tax
    • Popular Searches
    • What is Form 16?
    • Trademark Registration Fees
    • TDS Full Form
    • Ad Valorem Tax
    • How to Save Tax?
  • Aadhaar
    • Popular Searches
    • How to Book Aadhaar Card Appointment?
    • E-Aadhaar And It’s Benefits
    • What is a Masked Aadhaar?
    • ESign Aadhaar: A Complete Guide
    • Aadhaar Card Address Change
  • EPF
    • Popular Searches
    • EPFO Member Portal – Login, Registration
    • EPFO Establishment Search
    • Guide to Your EPFO Member Login
    • EPF Interest Rate
    • What Is UAN Activation?
  • PAN Card
    • Popular Searches
    • What is a PAN Card
    • NSDL PAN Card
    • UTI PAN
    • e-PAN Card
    • PAN Card Apply
  • Banking
    • Banks
      • Popular Searches
      • State Bank of India (SBI)
      • Bank of Baroda (BOB)
      • Canara Bank
      • Indian Bank
      • Bank of India (BOI)
    • Bank Timings
      • Popular Searches
      • Bank of Baroda Timings
      • IDBI Bank Timings
      • Union Bank Timings
      • Karnataka Bank Timings
      • Central Bank of India Timings
      • Canara Bank Timings
    • Mini Statement
      • Popular Searches
      • Axis Bank Mini Statement
      • HDFC Mini Statement
      • Bank of Baroda Mini Statement
      • Union Bank of India Mini Statement
      • SBI Mini Statement
    • Balance Enquiry
      • Popular Searches
      • Canara Bank Balance Enquiry by SMS, Missed Call, Netbanking
      • SBI Balance Enquiry
      • Union Bank of India Balance Enquiry Number
      • BOB Balance Enquiry
      • PNB Balance Check Number – Enquiry by SMS, Missed Call, Netbanking
    • NEFT
      • Popular Searches
      • HDFC NEFT
      • SBI NEFT
      • Axis Bank NEFT
      • ICICI Bank NEFT
      • Canara Bank NEFT
    • Net Banking
      • Popular Searches
      • HDFC Bank Net Banking
      • SBI Net Banking
      • ICICI Net Banking
      • Axis Bank Net Banking
      • IOB Net Banking
    • Customer Care
      • Popular Searches
      • Central Bank of India Customer Care Number
      • Bank of Baroda Customer Care – Missed Call and Toll Free Number
      • Bank of Maharashtra Customer Care
      • Punjab National Bank Customer Care Number – PNB Grievance Redressal
      • IOB Customer Care Number
    • UPI
      • Popular Searches
      • BHIM
      • Google Pay
      • BHIM SBI Pay
      • Union Bank UPI
      • HDFC UPI
    • Debit Card
      • Popular Searches
      • SBI Debit Card
      • HDFC Debit Card
      • PNB Debit Card
      • Axis Bank Debit Card
      • Kotak Debit Card
    • RTGS
      • Popular Searches
      • RTGS Process
      • SBI RTGS
      • ICICI Bank RTGS Form
      • Axis Bank RTGS Form
      • HDFC RTGS Form
    • IMPS
      • Popular Searches
      • IMPS Limit
      • IMPS vs. NEFT
      • IMPS vs. NEFT vs. RTGS
      • MMID
    • Cheque
      • Popular Searches
      • Types of Cheques
      • Blank Cheque
      • Cancelled Cheque – How to Write a Cancelled Cheque?
      • Account Payee Cheque
      • Banker’s Cheque
    • Bank Holidays
      • Popular Searches
      • Bank Holidays in June 2023
      • Bank Holidays in July 2023
      • Bank Holidays in August 2023
      • Bank Holidays in September 2023
      • Bank Holidays in October 2023
    • Mobile Banking
      • Popular Searches
      • SBI Mobile Banking
      • HDFC Mobile Banking
      • Bank of Baroda Mobile Banking
      • Indian Bank Mobile Banking
      • Canara Bank Mobile Banking
    • Passbook
      • Popular Searches
      • SBI Passbook
      • Union Bank Passbook
      • BOB Passbook
      • HDFC Passbook
      • Axis Bank Passbook
    • Demand Draft
      • Popular Searches
      • Demand Draft Validity
      • Demand Draft Form
  • Savings Account
    • Popular Searches
    • What is a savings account
    • SBI Savings Account
    • Bank of Baroda Saving Account
    • Bank of Maharashtra Saving Account
    • Central Bank of India Saving Account
  • Insurance
    • General Insurance
    • Car Insurance
    • Travel Insurance
    • Pension & Retirement
  • About Us
  • Contact
Investment Simplified > Banking > Banker’s Cheque
Banking

Banker’s Cheque

Monika Mohan
Last updated: 2023/05/25 at 6:28 PM
Monika Mohan Published January 12, 2023 5 Min Read
Share
SHARE
What is a Banker’s Cheque?Banker’s Cheque ValidityDifference between Banker’s Cheque and Demand DraftHow to Write a Banker’s Cheque?How to Deposit a Banker’s Cheque?Other Types of ChequesBanker’s Cheque: FAQs

A banker’s cheque is a type of cheque which is issued by your bank on your behalf to be paid to the payee. The Banker’s Cheque is also known as Pay Order in India. Let’s find out more about a banker’s cheque.

What is a Banker’s Cheque?

A banker’s cheque is a type of payment instrument in India. This is a type of cheque which you, as an individual, cannot issue. This is used only by the banks to make payments on behalf of their customers. A Banker’s cheque is payable only at the branch of issue and is used for payments within the local clearing jurisdiction.

Banker’s Cheque Validity

Just like any other type of cheque, a banker’s cheque is also valid for 3 months from the date of issued. However, the validity of a banker’s cheque may be increased upon providing the same in writing at the issuing branch. Earlier it used to be 6 months but RBI reduced this period to 3 months on 1st April 2012.

Difference between Banker’s Cheque and Demand Draft

Although, a banker’s cheque and a demand draft both have similar functions and features, there is one major difference between the two:

A demand draft can be deposited at any branch of the issuing bank whereas in case of a banker’s cheque, it is not the case. A Banker’s Cheque can only be deposited at the issuing branch and nowhere else.

Both the instruments are the safest form of making payments offline and without cash. There is no chance of a banker’s cheque being bounced as the amount is already deducted from the issuer’s account and the same applies to a demand draft as well.

How to Write a Banker’s Cheque?

Here are the steps to write a banker’s cheque in India:

  1. Fill in the Payee’s name: Write the name of the person or organization that will receive the payment on the “Pay” line.
  2. Fill in the Amount: Write the amount to be paid in both numbers and words in the “Amount” section of the cheque.
  3. Fill in the Date: Write the date on which the cheque is being issued in the “Date” section of the cheque. Ensure the date is the current date or a future date as per requirement.
  4. Fill in the Signature: Sign the cheque in the signature section at the bottom right corner of the cheque.
  5. Mention the Purpose: In the optional ‘Remarks’ or ‘Purpose’ column, mention the purpose of issuing the cheque, e.g., payment of fees, deposit for investment, etc.
  6. Handover the Cheque: Once the cheque is filled and signed, hand it over to the bank’s teller or designated person to issue the Banker’s Cheque.

How to Deposit a Banker’s Cheque?

To deposit a banker’s cheque, the payee needs to visit the issue branch, i.e. the branch at which the cheque was initially issued. Then present the cheque at the counter and present your ID as well. Once your ID is checked by the banker, you are required to sign a declaration in the bank’s register that you have received the amount. And that’s how you deposit a banker’s cheque.

Other Types of Cheques

In India, there are several types of cheques that are commonly used, including:

  1. Bearer Cheque: A bearer cheque is a cheque that is payable to the person who presents it to the bank, and it can be transferred to another person by endorsement.
  2. Order Cheque: An order cheque is a cheque that is payable only to the person named on the cheque or their order, and it cannot be transferred to another person.
  3. Crossed Cheque: A crossed cheque is a cheque that has two parallel lines drawn across it, indicating that it can only be paid into a bank account and cannot be cashed over the counter.
  4. Account Payee Cheque: This cheque is the most secure type of cheque. It can neither be encashed nor be transferred. Only the person whose name is written on the cheque can deposit this at their branch.
  5. Post-dated Cheque: A post-dated cheque is a cheque that is dated for a future date, and cannot be cashed until that date.
  6. Stale Cheque: A stale cheque is a cheque that is presented for payment after three months from the date of the cheque, and it is not valid for payment.
  7. Cancelled Cheque: A cancelled cheque is a cheque that has been cancelled by drawing two lines across it, and it is used as proof of bank account details.
types of cheques

Also, read more articles related to Cheque:

MICR CodeCancelled ChequeCheque Number
Account Payee ChequeChequeCrossed Cheque
Bearer ChequeCheque BookDifference Between Cheque & Demand Draft
Blank ChequeCheque BounceHow To Fill Cheque
Self ChequeTypes of Cheques

Banker’s Cheque: FAQs

What is Banker’s Cheque?

A banker’s cheque is a type of cheque which is issued by your bank to make payment to a third party on your behalf.

What are the Banker’s Cheque charges?

Banker’s cheque charges can vary from ₹25 for a sum of ₹5000 to ₹50 for an amount of ₹5,000 – ₹10,000. Please confirm the banker’s cheque charges with your bank.

How long is a Banker’s Cheque valid?

A Banker’s Cheque is valid for 3 months from the date mentioned on the cheque.

Who issues a banker’s cheque?

A banker’s cheque is issued by your bank on your behalf to be paid to the payee whose name is mentioned on the cheque.

Share This Article
Facebook Twitter Whatsapp Whatsapp Email Copy Link Print
By Monika Mohan
Monika Mohan is a writing enthusiast who has luckily turned her passion into profession. For the greens, she has an established foot in the personal finance sector and likes to put forth complex topics in an easy-to-understand manner, minus the jargons. Outside the penny lane, it’s all about poetry, mountains and single-malts.
Previous Article Account Payee Cheque Account Payee Cheque
Next Article Types of Cheques Types of Cheques
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Searches
  • SBi mini statement number
  • SBI Bank Timings
  • mini statement
  • axis bank mini statement
  • axis bank timing
  • canara bank timing
  • HDFC bank timings
  • HDFC Mini Statement
  • Bank of Baroda Timings
  • Bank of Baroda Mini Statement
  • Union Bank of India Mini Satement
  • Union Bank Timings
  • Canara Bank Timings
  • PNB Mini Statement
  • IDBI Mini Statement
  • Indian Bank Mini Statement Number
  • Indian Bank Timings
  • ICICI Bank Mini Statement Number
  • ICICI Bank Timings

Social Media

Social Media
Facebook
YouTube
Instagram
Twitter
Linkedin

Recent Post

Bandhan Bank Net Banking
Bandhan Bank Net Banking
Banking
Indusind Net Banking
IndusInd Net Banking
Banking
Kotak Net Banking
Kotak Net Banking – Registration, Login and Password Reset
Banking
IDBI Bank Net Banking
IDBI Bank Netbanking – Registration, Login and Password Reset
Banking

You Might also Like

HDFC Customer care

HDFC Customer Care Number (24×7 Toll-Free), SMS & Email ID

HDFC Bank is one of the India’s leading private banks that offer…

Read More
contra funds

Best Contra Funds to Invest in 2023

Most of the investors prefer putting their money in companies that are…

Read More
Federal Bank Debit Card

Federal Bank Debit Card

Debit cards are one of the easiest ways that enable bank-to bank…

Read More
PNB Debit Card

Punjab National Bank (PNB) Debit Card

Do you have a PNB debit card and have forgotten its PIN?…

Read More
IS logo 250px

We are here to make your investment journey simple by delivering content on financial topics in plain English.

Categories

  • Tax
  • Cryptocurrency
  • Aadhaar
  • Mutual Funds
  • Banking
  • General Insurance
  • Pension & Retirement
  • Car Insurance
  • Travel Insurance

Quick Link

  • About Us
  • Contact
  • Terms & Conditions
  • Privacy Policy
Social Media
Facebook
YouTube
Instagram
Twitter
Linkedin

We are here to make your investment journey simple by delivering content on financial topics in plain English.

Categories

  • Tax
  • Cryptocurrency
  • Aadhar
  • Mutual Funds
  • General Insurance
  • Pension & Retirement
  • Car Insurance
  • Travel Insurance

Quick Link

  • About Us
  • Contact
  • Terms & Conditions
  • Privacy Policy

Social Media

Copyright © 2023 Investment Simplified. All rights reserved.

Welcome Back!

Sign in to your account

Lost your password?