Bearer cheque

Last updated on Apr 8, 2022

If you have a bearer cheque, then you can present it to the bank and get the cash amount written on it. Any person can give the cheque and collect the money written on it.

For Example: If Sanjana presents the bearer cheque at the bank counter for encashment, the amount will be paid in cash to her.


Bearer Cheque

For illustration purposes only

Usually the words “or bearer” are printed on the leaf of the cheque. It can be issued to a third party in the third parties name or in the name of the firm. A bank cannot refuse payment of this kind of cheque across the counter.

Since anyone can present it to the bank and collect the cash amount written on it, these are risky in nature. So in a situation where you lose it, there may be a chance of someone else presenting it to the bank and collecting money.

If a cheque is crossed then it automatically is not a bearer cheque.

How useful was this post?

Click on a star to rate it!

Average rating 4 / 5. Vote count: 4

No votes so far! Be the first to rate this post.

Please share your feedback about this post!

Sharing feedback will help us improve our content. Tell us how!

If you want to keep your feedback confidential, please mention it in your feedback. If you have a question, please ask us in the comments or Ask Nyaaya sections.


abdul razzaq

January 23, 2024

an open cheque is issued in the name of firm not person, who has no bank account. may be paid on counter or necessary to open account and deposit in it?

Alka Manral

June 25, 2024

Open Cheque: This is an uncrossed cheque that can be encashed at any bank and the payment can be made to the person bearing the cheque. It can also be transferred from the original payee to a different payee. The issuer is required to put his signature on both the front and back of the cheque.
The open cheque can be taken directly to the bank and can be exchanged by the cheque holder. There are no formalities or verification processes on the part of the bank issuing the cash. The cheque bearer receives the money from the bank and can access funds immediately in case of emergencies.
Here’s a simplified guide to cashing a cheque:
1. Identify the type of cheque:
• Bearer Cheque: No name specified on the cheque. Simply visit any branch of the issuing bank in your city, present the cheque for clearance, and upon verification by the bank teller, you’ll receive the cash instantly.
• Order Cheque: Your name is mentioned on the cheque. Visit any branch of the issuing bank in your city, present the cheque for clearance, and upon verification, receive your cash immediately.
• Account Payee Cheque: Your name is on the cheque. Write your name, account number, and contact information on the back of the cheque. Then, choose one of the following methods:
2. Bank/ATM Dropbox Deposit:
• Use an ATM of your bank or visit any branch where you hold an account.
• If the ATM has a cheque deposit option, fill out the deposit slip, keep the smaller portion, and place the cheque and the other part of the slip in the ATM dropbox. Note that you won’t receive an acknowledgment from the bank, but you can still track the status of the cheque online or by contacting the bank.
3. ATM Deposit:
• Some ATMs allow direct cheque deposits. Follow the instructions displayed on the machine to deposit your cheque accordingly.
4. Bank Deposit:
• Fill out a cheque deposit slip available at the branch.
• Ensure you fill in all necessary details including your account number, branch name, cheque amount, and sign where required.
• Tear off your portion of the slip, attach it to the cheque, and drop both in the bank’s dropbox.
By following these steps, you can efficiently cash your cheque using various methods depending on the type of cheque and the facilities provided by your bank.

Leave a Reply

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

Have a question you want to ask our legal experts?

Related Resources

Encash a cheque

Process of encashing a cheque depends on whether it is a bearer cheque or order cheque. There are multiple modes for the same.

Endorsing cheques

By endorsing the payee can use the same order cheque to pay to someone else by writing that person’s name behind the cheque and signing it.

Cheque Bouncing

A cheque is said to have been ‘bounced’ or ‘dishonoured‘ is when it is deposited or presented for payment but could not be encashed by the holder of the cheque.

Order Cheque

An order cheque is a cheque where only the person or party in whose name the cheque has been drawn, can withdraw the cash.

Cheque Truncation System

Cheque truncation is a form of cheque clearing system. It digitises a physical paper cheque into a substitute electronic form.

Crossed Cheque

Crossing a cheque means that it cannot be transferred to anyone else. These cheques can only be credited to the payee’s account.