BANKING AFFAIRS

Detailed explanation-1: -Order Cheque: It can be encashed only by the payee, that is, the person whose name has been written on the cheque. 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.

Detailed explanation-2: -Ans: Account Payee Cheques are a highly secured payment method. The recipient cannot mark the cheque for anyone else. He or she is the only person who can encash the account payee cheque and receive the amount into his/her bank account.

Detailed explanation-3: -A check made payable to cash is a type of check that can be cashed by the person who has the check, whether they’re the intended recipient or not. Writing a check to cash can be helpful if you don’t know who the check’s payee is, or if you need to write yourself a check to get cash quickly.

Detailed explanation-4: -Banks will allow you to cash or deposit a personal check for someone else. This is especially useful for people without a bank account, as it means a friend or family member can cash in a personal check for you.

Detailed explanation-5: -A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer. The person or entity writing the check is known as the payor or drawer, while the person to whom the check is written is the payee.