Bank Cheque: Alert for those using Bank Cheque, know this update..

But despite this, transactions worth crores of rupees are still done through cheques. Many times you must have seen that when we give a check to someone, we sign both its front and back.

Why is the back of a cheque signed?
Do you know why the back of the cheque is signed? Actually, this one sign can save you from getting into big trouble. But please tell here that only the back of the bearer cheque is signed. These are such checks in which it is necessary to show the identity of the person cashing or depositing the cheque.

Cancel the bearer word on the check
A bearer cheque is used to make payments on behalf of any person or business. As per the information, the order is not signed on the back of the cheque. These are such cheques in which the word bearer is canceled on the cheque. In this, the identity of the payee is insisted upon by the bank while giving the payee's order cheque.

What is bearer check and order check?
Apart from the bearer and the order, many times we sign on the back of the check to verify our signature. The bank staff also ask you to sign to match the signature. Often people are not aware that not all cheques are signed. Due to not having the correct signature, sometimes there is a problem with cheque bounce.

Sign to verify
If our cheque is stolen then it is easy to encash if there is no signature behind it. That's why many times bank employees ask to sign at the back of the cheque. Sometimes the sign is not correct. That's why they are made to sign again to get it verified.
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