Learn Cheque Number and Different Types of Cheques

Information on Cheque Number on Cheque, MICR Code on Cheque, Cheque No, Bearer Cheque, Self Cheque, Order Cheque, Payee and Payor (Payer) Details

What is Cheque

A cheque is a document that states a bank to pay a fixed amount from one person to another person. The payer is the person who issues or writes the Cheque. The Payee is the person who receives the cheque. A person, company, or any legal entity can issue or receive the Cheque. Let’s learn about Cheque number on Cheque, MICR code on Cheque, Bearer Cheque, Self Cheque, Order Cheque, Payee, and Payer.

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Cheque number

There are many numbers on the Cheque book. They all are unique numbers. Cheque Number helps to identify the Cheque. The first 6 digits on the left-side bottom of the Cheque is Cheque number. At many places, we have to give or mention cheque numbers as it helps to identify. The below image is the example for the same to clear the cheque number on the cheque.

Cheque number

Different Cheque Number

MICR code Number on Cheque

MICR Code (Magnetic Ink Character Recognition) is the Second 9 digits from the left-side at the bottom. It just comes after the cheque number. It helps cheque reading machines to identify banks and branches. There are three parts in the MICR Code on Cheque. The first three number is of City Code. They are the same number of First three numbers of Pin codes of that city. In the below image, the first three number is 400 as it belongs to Mumbai. The below image is the example for the same to clear the MICR Code on the cheque.

MICR code on Cheque

The Next three numbers of MICR codes are of Bank Code. Every bank has a unique code and the same code is the next three numbers. In the below image, 240 is the bank code for HDFC. The last three digits of the MICR Code are of Branch Code. Every branch has a unique code so you can easily trace and find out the details of the cheque. So by just looking at the MICR Code, anyone can identify the city, bank & branch of the cheque.

Account Code Number on Cheque

The next digit numbers just after the MICR Code are account code. Account code is the second last digits as they are few numbers from the account number. In the below image you can see the account code is 000754. They are part of your Account Number. The below image is the example for the same to clear the account code on the cheque.

Account Code on Cheque

Transaction ID

The transaction ID is the last two digits on the bottom of the cheque. They represent whether the cheque is payable at par or it’s a local cheque. The cheque that has 29, 30 & 31 as transaction id is payable at par. The cheque that has 09, 10, and 11 as the transaction id is local cheque. The payable at par cheque can be cashed at any branch of the issuing bank is a major benefit. The Local cheque can be cashed only at the issuing branch is a major drawback. Nowadays, every bank has a core banking solution enabled so every cheque is payable at par. As you can see in the below image, the transaction ID is 31, so it is payable at par cheque and encashed at any branch of HDFC.

Account Number on Cheque

The highlighted part in the below image is the account number on the cheque. Every cheque has an account number displayed on the left side below payment details. Thee bank issue a unique number and every bank have a different series and they are unique. The below image is the example for the same to clear the account number on the cheque.

IFSC Code on Cheque

Every cheque has IFSC code printed on it. IFSC Code is very important in banking as it represents the specific branch of the bank. It makes payment swift and hassle-free. It makes fund transfer easy and smooth. The below image is the example for the same to clear IFSC Code on the cheque.

Payee and Payor (Payer) Details

The payor/payer is the person who agrees to pay a fixed amount to the payee. The payee issues a cheque to the payee. In simple language, the cheque owner who writes the cheque is the payer. There is no value of cheque without the signature of the payee. Make sure there is no overwriting on the cheque. Fill the amount column carefully and leave no space in between. Leave no part of the cheque empty and fill sign clearly. The below image is the example for the same to clear the meaning of the payor.

Payor (Payer) Details

Payee and Payor (Payer) Details

The payee is the person, company, or any legal entity who receives the amount. The payer agrees to pay a fixed amount to the payee. His name will appear in the pay column as highlighted in the below image. The person who will receive the amount after encashing cheque is the payee. The below image is the example for the same to clear the meaning of the payee.

Payee Details

Types of Cheque

Open Cheque

The open cheque is where the holder can cash it at the bank or by depositing at account in his own account. The below image is the example for the same to clear the meaning of open cheque where the cheque is not crossed on the top left side of the cheque leaf.

Open Cheque

Bearer Cheque

The Bearer cheque is payable to the person who represents the cheque at the bank counter. The cheque can be presented on behalf of the payee/beneficiary. The bearer word will be not be crossed in such cheque. These cheques are risky as can be cashed by anyone if lost. The below image is the example for the same to clear the meaning of the bearer cheque.

Bearer Cheque

Self Cheque

The self cheque is payable to the account holder himself. The cheque is issued to withdraw money from one’s own account. The below image is the example for the same to clear the meaning of self cheque.

Self Cheque

Crossed Cheque

The crossed cheque is not payable at the bank counter. The cheque is deposited in the payee account so it makes it a safer option. The amount is credited only in the payee account. In the crossed cheque two parallel lines are drawn on the left-hand upper corner of the leaf. The below image is the example for the same to clear the meaning of crossed cheque.

Crossed Cheque

Order Cheque

An order cheque is payable to the person other than the payee. The payee authorized a specified person to receive the payment. The payee has to sign and write the name of the person whom the money will be paid. The below image is the example for the same to clear the meaning of order cheque.

Order Cheque

Also, if you are looking for help with other banks in India, here is a list of all banks for India, also if you need help with international banking here is a useful website: onlinebanking.tips.