Suggestion : Always cross your cheques unless the person you are paying asks for a "cash" cheque, or if the person does not have a bank account. However, if the cheque gets stolen, the thief - or anyone taking the cheque from the thief — has no claim against me. This means I can stop the cheque and nobody can successfully sue me for payment if the cheque has been transferred through an illegitimate transaction.
Always name the payee correctly which includes in the case of a company the addition of " Pty Ltd" or "Ltd" and, in the case of close corporations, the designation "CC". Never send a cheque by mail unless the payee has authorised payment by cheque through the post. If the payee has not done so, you will be responsible for any loss or theft of the cheque.
My bank must see to it that my instruction is correctly carried out. The bank into which my cheque is deposited i. The bank where the cheque is deposited must ensure that the person depositing the cheque is allowed to receive payment. But because the amount of the cheque was funded by your bank on the day the cheque was cleared, your bank was "out of pocket".
An overnight incidental OD interest charge is thus imposed. The banks' standard Terms and Conditions provide for them to levy the necessary interest charges if your account goes into an overdraft position due to insufficient funds. To avoid such charges, you should monitor your account regularly and issue cheques only when there are sufficient funds in your accounts. Can I encash a cheque at a branch of the bank other than the one which issued the cheque?
Many retail banks in Singapore allow customers to encash cheques at branches other than the home branch of the account holder. For control reasons, limits could be placed on the amount withdrawn. However, there are a few banks that do not allow encashment other than at the home branch as they do not have an on-line system to verify customers' signatures.
What precautions should I take to ensure that a cheque I receive will be honoured? Personal cheques can bounce for various reasons, so accepting personal cheques means accepting the risks attached.
Any business, as a matter of prudence, should conduct its own credit assessment of the parties it deals with before entering into a business transaction and agreeing on the mode of payment. Banker's cheques or cashier's orders provide assurance that payment will be honoured. As a general rule, if the word "bearer" is deleted and the cheque is not crossed, banks would allow only the named payee to obtain cash for the cheque.
Under CTS, when a cheque that you have deposited into your account is returned unpaid, you will receive an IRD instead of the cheque. This can help you keep track of the total amount you have paid out.
Check these transactions against your bank statements as soon as you receive them. If you spot any discrepancies, notify your bank immediately. Or within the time period required by the bank. A Singapore Government Agency Website. Home Articles Understanding cheques English English. Key takeaways Make sure you have sufficient funds in your account for the cheque amount.
Cross your cheques to ensure that only the payee can deposit it. Record and track all your cheque transactions and tell the bank if there are discrepancies.
Next Understanding debit cards. Not where the cheque is crossed. Any alteration or attempt at alteration of the crossing would be treated with caution by a bank as it could be a fraudulent. Section 77 2 of the Bills of Exchange Act specifically allows both the receiver i. It may be possible for a customer to cash one of their own crossed cheques over a bank counter if they go into their own bank as the bank will be able to identify them as one of their own customers but this service is not always offered.
Customers would generally find it more convenient to obtain cash over the counter by means of their debit card. Cheque cashing shops have special arrangements with their own bank to pay in cheques to their account where the cheques themselves are made payable to other people.
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