Cheque : A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. It is an unconditional order in writing ,drawn by a customer on his bank, requesting the specifying bank to pay on demand a certain sum of money to a person named in the cheque or to the bearer or to the order of a stated person.
A cheque being a bill of exchange must possess the following requirements
- A cheque must be drawn upon a specified banker
- A cheque must be payable on demand
- A cheque must be signed by the drawer
- A cheque must be an unconditional order to pay a certain amount of money
- A cheque must be dated
RBI (Reserve Bank of India) has asked Core Banking Solution enabled banks to issue multi city cheques to all eligible customers to speeding the fund transfers and for improving the customer services.
Now ,All Core Banking Solution (CBS) enabled banks issue only ‘payable at par’/’multicity’ CTC 2010 standard cheques to all eligible customers.These multicity cheques can be cleared by any branch of the same bank in the country.
As before certain banks were issued multicity cheques to only high net worth customers but now every eligible customer could enjoy the facility and comfort ability of multicity cheques.