Cheque is an order issued on a bank by a person or firm having deposit in the bank to pay on demand the mentioned sum of money to the person or the firm named there in or to the bearer of the cheque. Cheque is in printed form supplied to the depository the bank for withdrawing cash. It is a very convenient and safe method of many payment. Blank cheque forms are supplied to the depositors in a book form where all application form for obtaining another cheque book is attached to it. Each cheque...

An order cheque is a cheque which is made payable to a person or a party named in the cheque on presentation at the bank.

When is cheque is crossed across its face with two parallel lines to ensure. That the payment reaches to the concerned party is known as crossed cheque.

Refusal to make the payment of a cheque to the payee by the bank when presented it to the bank counter is called dishonour of cheque.

The two reasons for dishonour of a cheque are

• if the cheque is presented with future date or after the expiry of three months period of time from the date of issue of a cheque
• if the bank receives a notice about insolvency of the drawer.
  

A bearer cheque is a cheque which is made payable to the bearer of the same on presentation at the bank cash counter.

The non-banking financial institutions are

• Finance Companies,
• Employees Provident Fund,
• Capital Market,
• Insurance Companies,
• Citizen Investment Fund (Trust).
  

Riksbank of Sweden is the first Central Bank which was established in Sweden in 1656 AD.