ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When someone pays you with a check, typically you have to sign the back of it before you can deposit it in your account. Signing the back of it is called “endorsing the check.” We have tips on how you can safely endorse a check.

Detailed explanation-2: -To receive the funds, the payee must sign, or endorse, the back of the check. This signature, called an endorsement, informs the bank or credit union that whoever signed the check is the payee and wants to accept the money.

Detailed explanation-3: -1. A check must be endorsed on the back for it to be valid for deposit. So, always sign your name in the blank space next to the X just before you bring it to the Bank. Note: You can deposit at a Bank location, through our mobile app, or at an ATM.

Detailed explanation-4: -To sign a check over to someone else, you should first endorse it where you typically would, then write “Pay to the order of (the person’s name who you want to sign it over to)” on the next line. You may also need the person you are signing the check over to to sign the check.

Detailed explanation-5: -The issuer needs to put his signature on both the front and back of the cheque. These types of cheques bear a later date of being encashed. Even if the bearer presents this cheque to the bank immediately after getting it, the bank will only process the payment on the date mentioned in the cheque.