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How to use a Cheque – Kenya Bankers Sacco
A Cheque is a document which orders a bank to pay a particular amount of money from a person’s account to another individual’s. The cheque is utilized to make safe, secure and convenient payments. It serves as a secure option since hard cash is not involved during the transfer process; hence the fear of loss or theft is minimized. If you are still stuck with questions like ‘What is cheque?’, or ‘How is it useful?’, then the knowledge about depositing and cashing should be understood for gaining a better insight into this payment system.
Ways of using a cheque
- Cashing a cheque means that you’ll be offered the cash in hand. One can simply walk away with the complete amount of the payment and can spend that money as per his/her requirements and without any restriction.
- On the other hand, depositing a cheque basically means adding that amount to your bank account or credit union. Under the deposit process, you might need to wait a couple of days until the full amount is available for withdrawal or spending.
- Drawer (Maker of Cheque) – The person who issue the cheque or hold the account with bank..
- Drawee –The Person who is directed to make the payment against cheque. In case of cheque, it is bank.
- Payee–A person whose name is mentioned in the cheque or to whom the drawee makes payment. If drawer has drawn the cheque in favor of self then drawer is payee
A Cheque is a document which orders a bank to pay a particular amount of money from a person’s account to another individual’s.
Common Safety Measures for Writing a Cheque
Have you ever written a cheque? It might appear as the easiest thing to do, but can mess you up really bad, if any error is made. There are certain important things we might consider while writing a cheque to someone that can be easily misused or dishonored.
- One needs to destroy all cancelled cheques until and unless they are used for any particular purpose of submission for ECS.
- Make sure you do not hand over a cheque without the presence of date, amount of cheque in numbers and words and Payee name.
- Keep your signature clear and if needed sign twice to ensure that the cheque is not bounced due to signature mismatch.
- Drawee –The Person who is directed to make the payment against cheque. In case of cheque, it is bank.
- Further, mention the credit card number, mobile number, connection number etc., on the reverse side of the cheque while you make payments towards bills for utilities.
Conclusion
What is cheque safety? It basically points to the careful preservation or proper maintenance of all your cheque records. One should manage a record of the cheque details comprising the cheque number, issuer name, and date for future safety reference. Do not forget to mention the payment amount with every cheque that is issued. Usually, cheque books do consist of a section for all such information at the extreme back. However, try to keep this information handy in order to avoid any kind of confusion, suspicious activity, or possible fraud.
At Kenya Bankers Sacco, we were registered on 14th February 1975 as a Savings & Credit Co-operative Society to initially serve employees in the banking industry. The Sacco Head office is located at Kenya Bankers Sacco Center along 3rd Ngong Avenue, off Ngong Road -Nairobi. Get in touch with us on +2540205146500, email us on help@kenyabankers.coop or visit our website for more details.