Cheque

A. Definition
A cheque (or check in American English) is a document that orders a bank to
pay a specific amount of money from a person's account to the person in whose
name the cheque has been issued. The person writing the cheque, the drawer, has a
transaction banking account (often called a current, cheque, chequing or checking
account) where their money is held. The drawer writes the various details including
the monetary amount, date, and a payee on the cheque, and signs it, ordering their
bank, known as the drawee, to pay that person or company the amount of money
stated.
B. Kinds of Cheque
1. Bearer Cheque
When the words "or bearer" appearing on the face of the cheque are not
cancelled, the cheque is called a bearer cheque. The bearer cheque is payable to
the person specified therein or to any other else who presents it to the bank for
payment. However, such cheques are risky, this is because if such cheques are
lost, the finder of the cheque can collect payment from the bank.
2. Order Cheque
When the word "bearer" appearing on the face of a cheque is cancelled
and when in its place the word "or order" is written on the face of the cheque,
the cheque is called an order cheque. Such a cheque is payable to the person
specified therein as the payee, or to any one else to whom it is endorsed
(transferred).
3. Uncrossed / Open Cheque
When a cheque is not crossed, it is known as an "Open Cheque" or an
"Uncrossed Cheque". The payment of such a cheque can be obtained at the
counter of the bank. An open cheque may be a bearer cheque or an order one.
4. Crossed Cheque
Crossing of cheque means drawing two parallel lines on the face of the
cheque with or without additional words like "& CO." or "Account Payee" or
"Not Negotiable". A crossed cheque cannot be encashed at the cash counter of a
bank but it can only be credited to the payee's account.

5. Anti-Dated Cheque
If a cheque bears a date earlier than the date on which it is presented to
the bank, it is called as "anti-dated cheque". Such a cheque is valid upto three
months from the date of the cheque.
6. Post-Dated Cheque
If a cheque bears a date which is yet to come (future date) then it is
known as post-dated cheque. A post dated cheque cannot be honoured earlier
than the date on the cheque.
7. Stale Cheque
If a cheque is presented for payment after three months from the date of
the cheque it is called stale cheque. A stale cheque is not honoured by the bank.

C. How To Make a Cheque

1. The clients should have a bank account first. Then, they should fill the form
of bank account application (For individual fill AR-01 and for nonindividual fill AR-02).
2. Fill the form with the right identity.
3. In the enclosed, give a photocopy of ID card for AR-01 and AR-02, and a
photocopy of NPWP for AR-02.
4. If the clients want to make a cheque book, they should have checking
account. The definition of checking account is a transactional deposit
account held at a financial instituon that allows withdrawal and deposit.
5. Minimum balance in checking for AR-01 is Rp. 500.000 and for AR-02 is
Rp. 1.000.000.
6. Administration for making a cheque book, the clients should pay Rp.
100.000.

D. How To Fill a Cheque

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1. Date

Date format using American style is month/day/year. You can write it out
in one of several formats, such as 10/19/2015, or October 19, 2015.
2. Payee
Write the name of the person or company to whom you are paying
money with cheque.
3. Amount of numbers
Write the amount in numbers. For example is 4.000.000. Note that the
Rp. Sign is already pre-printed. Therefore, you dont to write it again.
4. Amount in words
This will be the same amount that you wrote in step 3. For example is
four million.
5. Signature
Your signature, the same way you wrote it when you opened your bank
account. If you have a joint account, and if there are multiple signatories, any
authorized person can sign.
6. Cheque Number
Each cheque has a different cheque number. Please note that the cheque
number appears twice on the cheque-once at the top right corner and once at the
bottom center.

7. Account number
Your bank account number. This number will be the same on all of your
cheques. On a cheque, this number is generally accompanied by this special
symbol :