In India, different types of cheques can be used for various purposes. Here are the commonly used types of cheques:

  1. Bearer Cheque: A bearer cheque is payable to the person who presents it to the bank for payment. It does not have the name of the payee written on it. The person in possession of the cheque can encash it at the bank counter. Bearer cheques are risky as they can be used by anyone who possesses them.
  2. Order Cheque: An order cheque is payable to a specific person or entity named on the cheque. The payee’s name is mentioned on the “pay” line, and only that person or entity can encash the cheque. It provides more security than bearer cheques since only the designated payee can receive the payment.
  3. Crossed Cheque: A crossed cheque has two parallel lines drawn across the face of the cheque. It indicates that the cheque can only be deposited into a bank account and cannot be encashed over the counter. Crossed cheques provide added security as they can only be credited to the payee’s bank account.
  4. Account Payee Cheque: An account payee cheque is similar to a crossed cheque, but it has the words “Account Payee” or “A/C Payee” written between the two parallel lines. This type of cheque can only be deposited into the bank account of the payee and cannot be transferred to any other person. It ensures that the payment is directly credited to the intended payee’s account.
  5. Post-Dated Cheque: A post-dated cheque carries a future date that is later than the date on which the cheque is written. It is a way to provide a future payment and is commonly used for installment payments, loan repayments, or scheduled payments. The cheque is not valid for encashment until the specified future date arrives.
  6. Self Cheque: A self cheque is written by an account holder to withdraw money from their own bank account. The payee’s name is the same as the account holder’s name. It is usually used when the account holder wants to withdraw cash from their account or transfer funds to another account held in their name.
  7. Gift Cheque: A gift cheque is a special type of cheque issued by banks for gifting purposes. It allows the recipient to encash the cheque at any branch of the issuing bank without having an account with that bank.

It’s important to note that these types of cheques can be subject to specific conditions and regulations imposed by individual banks or the Reserve Bank of India (RBI). Therefore, it is advisable to consult with your bank to understand their specific policies and guidelines regarding the use of different types of cheques.