Crossed cheques can be endorsed to other parties while the Account-payee cheques can't be endorsed and funds are only transferred to the account whose name is mentioned on thechequee. This … Advertisement . Talk to the person you're going to sign the check over to and find out what bank or check cashing service they plan to use to cash or deposit the check. Blank endorsement of a financial instrument, such as a cheque, is only a signature, not indicating the payee. Yes. These forms were printed on "cheque paper" to prevent fraud, and customers had to attend in person and obtain a numbered form from the cashier. If you're giving the check over to your friend to deposit in their account, who needs to sign the back of the check?  They are often issued by government entities such as the military to pay wages or suppliers. Introduction Endorsement means signature of the holder (An individual who has lawfully received possession) made with object of transferring the document. Companies sometimes pay millions for product endorsement by celebrities. wikiHow marks an article as reader-approved once it receives enough positive feedback. Signatures on the back of cheques are called endorsements. Section 15 of the Negotiable Instrument Act 1881 defines endorsement. In 1993, cheques accounted for over half of transactions through the national banking system, with an annual average of 130 cheques per capita. Endorsement of a Cheque: Endorsement means signing at the back of instrument for the purpose of negotiation. In addition the words 'or bearer' must not be used, or if pre-printed on the cheque must be crossed out on the payee line. However, if the person who wrote the check puts "or" between the two names, either you or the other name can use the check. Make sure your signature doesn't extend into that space, or the bank may refuse the check. 15 of the NI Act is “when the maker or holder of a negotiable instrument signs the same, otherwise than as such marker. Cheque volumes continued to grow; in the late 20th century, cheques were the most popular non-cash method for making payments, with billions of them processed each year. You cannot give the check to your friend for a deposit if only your name is signed. Make sure the name you sign matches the name on the front of the check, even if the person who wrote the check misspelled or abbreviated it. Generally, the person will have better luck getting a third-party check accepted if they go to a bank where they have an account and present the check for deposit.  In the report the date the credit appeared on the recipient's account (usually the day of deposit) was designated "T". The cheque had its origins in the ancient banking system, in which bankers would issue orders at the request of their customers, to pay money to identified payees. 3. References The payee's signature on the back of a check indicating that the payee has received the check. In some countries, entering the bank account number results in the bank revealing the name of the payee as an added safeguard against fraud. This allowed the creation of electronic cheques and translation (truncation) of paper cheques into electronic replacements, reducing cost and processing time. 2. Companies sometimes pay … endorsed cheque meaning: a cheque to someone who has then written another person's name on it so that they can receive the…. This includes the date, amount of payment, and signature. Certified cheque - guaranteed by a bank. the type of cheque shall be order payee cheque... sorry shruti....for giving one word ans. I had endorsed it and was about to head out the door to, "I received a check made out for my mother's memorial. The bank required that cheque endorsement be witnessed by a cashier. The wording ‘For Deposit Only' conditions what can be done with an endorsed check. Thus, a certified cheque cannot "bounce", and its liquidity is similar to cash, absent failure of the bank. 1. In some cases, the payee will take the cheque to a branch of the drawee bank, and cash the cheque there.  In 1938, the Calcutta Clearing Banks' Association, which was the largest bankers' association at that time, adopted clearing house. Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. This is followed by digits 5 through 8, identifying the specific bank served by that cheque-processing centre. This article has 13 testimonials from our readers, earning it our reader-approved status. Financial institutions also facilitate transfers between accounts within different institutions with the Email Money Transfer (EMT) service. The act of endorsing. Forged endorsement is a type of fraudulent payment. 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