Identification must be insisted on by the bank when encashing the order cheque for the presenter. The cancellation of the word Bearer automatically makes the cheque an order cheque.Īn order cheque can be paid to the named payee across the bank's account if so presented. This is a cheque whereby the printed word Bearer on the cheque is cancelled. In banking practice, the need for the encasher's signature on the back of the cheque is merely to evidence that the encasher has received the money from the bank. However, in normal banking practice, where the amount of the cheque is substantial, the identity of the encasher is insisted on.Ī bearer cheque can be collected by the bank for the credit of anyone's account. No identification is needed when a bearer cheque is presented for encashment. In other words, the holder (or the Transferer), when giving it to another person need not endorse the cheque. This cheque is payable by the drawee bank over the counter to the Bearer or presenter of the cheque.Ī Bearer cheque can be negotiated or pass to another person by mere delivery. The cheque sometimes can be made payable to Cash or bearer or made payable to a specific name, for example, Ahmad Osman or Bearer.

Hence, it is up to the drawer to specify whether he wants to make the cheque payable to order or bearer.Ī bearer cheque is one that does not has the word 'Bearer' on the cheque cancelled. A cheque is generally known as an Open cheque when it is not crossed whether it is made payable to bearer or order.Ĭheque in its printed form comes in the following manner:

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