Advantages / Objectives / Importance / Cause of popularity of Cheque.

Advantage of Cheque

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A cheque is an order written by a drawer to a banker to pay on demand a specific sum of money to the parson or persons named as payee on the cheque. Advantages / Objectives / Importance / Cause of popularity of Cheque are given below :

1. More safety & secured.

2. Easy medium of exchange.

3. Easy preservation.

4. Easy transferability.

5. Increasing translations.

6. Credit control.

7. Proper utilization of funds.

8. Reducing risk.

9. Easy counting.

10. Alteration of money.

11. Creation of credit deposit.

12.Proof able document.

13.Facilities of account keeping.

14. Safety from forgery.

15. Archiving Economy.

Dishonour of Cheque. Causes /Reasons for Dishonour of Cheque.

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Dishonour of Cheque.

Dishonour of Cheque means the refusal of drawee bank to pay its customers cheque. It means to fail to pay its customers cheque. when a paying banker must refuse payment of cheques in due of insufficiency of funds, drawing mistake etc. is called Dishonour of Cheque. Moreover it means to fail to pay a cheque when the account of drawer does not have sufficient funds to cover it.

Causes /Reasons for Dishonour of Cheque:

* Insufficiency of funds in account.

* If signature of client is absent in cheque.

* If signature of client in cheque isn't similar to the signature on signature card.

* Account number is absent or wrong.

* signature of drawer is not clear.

* If the date is not composed or composed mistakenly alternately the date given is of three months prior or if the advance date is given.

* If the name of the payee is not composed or not composed plainly.

* If the requested or crossed checks are exchanged without fitting underwriting and  conveyance.

* If the sum is not composed in words and figures or composed mistakenly or if the sum written in words and figures does not coordinate with one another.

* If the change made on the check is most certainly not demonstrated by the drawer giving mark.

* If the record number is not said or on the off chance that it is not clear or in the event that it is not specified unmistakably.

* If the signature is not given or if the mark given in the check does not coordinate with the signature given on the mark detail card kept by the bank.

* If the sum specified on the check is more than the sum that the drawer has in his ledger or if according to bank's govern the least adjust in the record of the drawer can not remain.

* If the weigh is not found in legitimate condition then again it is discovered wet, torn or spotted.

* If the drawer has offered request to the bank to stop instalment of the check.

* If the bank has got the data in regards to the passing or indebtedness or lunacy of the drawer of investor.

* If the court of law requests the bank to stop instalment of the check.

* If the bank equalization remains lack on record of not gathering the check saved.

* If the drawer has shut his/her record before introducing the check.

* If drawer is death.

* If drawer is mentally imbalanced.

* If drawer is bankruptcy.

* If drawer gives advanced  notice to bank not to pay.

* If money payment from drawer account is forbidden.

* If Condition is not fulfilled in case of conditional cheque.

* If direct crossed cheque is placed to bank.

* If drawer disputes on a cheque has already been picked up or lost.

* If re-approval of bank is needed.

* If dual signatures are not given in case of dual signed account

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* If seal is not placed on the cheque in case of official account.

* If the specified order of drawer is not obeyed.

* If the serial number on leaf of cheque is absent or that number is not similar to issued numbers.

* If actual receiver doesn't submit the cheque.

* If any pre-conditions given by bank to clients account is hold.

* If cheque is placed by disqualified holder.