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Apparent tenor of cheques means: date of cheque, sum of cheque both word and figure, name of payee, drawer signatures.
The following are the main differences between a cheque and a demand draft: 1. A cheque is issued by an individual, whereas a demand draft is issued by a bank. 2. A cheque is drawn by an account holder of a bank, whereas a draft is drawn by one branch of a bank on another branch of the same bank. 3. In a cheque, the drawer and the drawee are different persons. But in a draft both the drawer and the drawee are the same bank. 4. A Cheque can be dishonored for want of sufficient balance in the account. Whereas a draft cannot be dishonored. Hence there is certainty of the payment in the case of a demand draft. 5. Payment of a cheque can be stopped by the drawer of the cheque, whereas, the payment of a draft cannot be stopped. 6. A cheque is defined in the Negotiable Instrument Act, 1881, whereas a demand draft has not be precisely defined in the NI Act. 7. A cheque can be made payable either to a bearer or order. But a demand draft is always payable to order of a certain person.
There are 4 things The date on the cheque make sure its not older the 12 mounts The amount in words and figers are the same The payee is spelt corretly The cheque uis singed by the drawer Hope i helped Jacko
. MeaningA cheque is an unconditional order directing the banker to pay a certain sum of money only to or to the order of a certain person.A draft is an order to pay money drawn by one office of a bank upon another office of the same bank for a sum of money payable to order on demand.2. FacilityThe current account and saving account holders get a cheque facility.Draft is issued to anyone even to non-account holders.3. PurposeCheques are used to make payments or to settle transactions. There is no certainty of payment in the case of cheques as they can be dishonoured or payment can be stopped.The main purpose of a draft is to transfer money from one place to another or to guarantee the certainty of payment to the payee.4. DrawerIn case of cheque, the drawer is the customer of the bank.In case of draft, the drawer is the bank itself.5. Bank chargesThe bank may not charge for issuing the cheque book.The bank charges a nominal fee or commission to issue a draft.6. DishonourCheques can be dishonoured for various reasons.There is no question of dishonouring of draft.7. Stopping of paymentIn case of cheque, the drawer can ask the bank to stop payment of the cheque even if it is delivered to the payee.In case of draft, the purchaser of the draft can ask the bank to stop payment before the draft is delivered to the payee.8. PopularityCheques are very common and popular mode of payment.Drafts do not enjoy much popularity as compared to cheques.9. ClearanceIn case of cheque, there is a need for clearance.In case of a draft, there is no need for clearance, if DD is drawn on the same bank.10. Parties involvedThree parties are involved in cheque transaction viz., (a) Drawer, (b) Drawee, and (c) Payee.Two parties are involved in draft transaction viz., (a) Drawer, and (b) Payee
The essential elements of a cheque include the name of the bank, account payee, payee of whom the cheque is written to, date of the cheque, the payment amount written in words and numbers, serial number of the cheque, the bank state and branch code, and the account number. A signature must be signed at the bottom signature line for the payee to present the cheque.
The DRAWER is the individual who issues the cheque, instructing the bank (DRAWEE) to pay the recipient (PAYEE). Drawer and payee can be the same person if it is a self cheque.
The two parts of a cheque are the drawer's portion and the bank's portion. The drawer's portion includes the information of the person or entity issuing the cheque, such as their name, address, and signature. The bank's portion includes details about the account holder, the amount of money to be paid, and space for the bank to process and record the transaction.
drawer- the person who writes and sings the cheque . drawee- the bank on which the cheque is drawn . payee- the person named on the cheque .
the person making out a cheque and using it for payments
Usually it is the drawer of the cheque who also crosses the cheque. But any one may do so.
The drawer of the cheque can cancel the crossing of the cheque , by cancelling the parallel lines and writing in words - Crossing Cancelled and Signing below it !
Apparent tenor of cheques means: date of cheque, sum of cheque both word and figure, name of payee, drawer signatures.
A banker's draught is a cheque whose drawer is also its drawee.
A banker's draft is a cheque whose drawer is also its drawee.
(R)eturn to (D)rawer.
if the service branch send the chq for clearing in wrong branch. then chq is bounced for the reason ' refer to drawer'
Cancelling the date of the cheque amounts to material alteration. Hence any alteration made on the cheque should be athuenticated on the cheque by the drawer's full signature.Mere initialling the alteration is not sufficient .A drawer, who wishes to change the date of the cheque, should first score off the earlier date with a dash or a line and then write "Date cancelled" and put his full signature and then followed by new date. If the singature filed with the banker and the full signature put on the cheque tallies, the cheque becomes a valid negotiable instrument.M.J. SUBRAMANYAM, XCHANGING, BANGALORE