Endorsement of Cheque PPT

CHEQUE
A cheque is a written order from one person

(the payer) to another person or organization
(the payee) directing a bank to pay a specific
amount of money from the payer's bank
account to the payee. It's a common way of
transferring money without using cash. When
you write a cheque, you're essentially
instructing your bank to transfer money from
your account to someone else's when they
deposit or cash the cheque.
Endorsement of
Cheque
The endorsement of a cheque is signing the
back of it, typically to transfer ownership or to
authorize someone else to cash or deposit it.
It’s like giving money to someone else to use

the money specified on the cheque.
Endorser: person signing the instrument

Endorsee: the person in whose favor the
instrument is transferred.
Legal Provisions Regarding Endorsement
Effect of Endorsement
Effect of
Endorsement Joint Holding of Instrument
Endorsing a cheque signifies

the transfer of ownership Time
from the payee to the
endorsee, allowing the
endorsee to receive the Endorsement for Partial Amount
funds.
Death of Endorser
Joint Holding of
Instrument Joint Holding of Instrument
if the instrument is held

jointly by a number of Time
persons, endorsement by all
of them is essential unless
the right to negotiate is Endorsement for Partial Amount
restricted.
Death of Endorser
Time
Joint Holding of Instrument
There is generally no specific
time limit for endorsing a
cheque. However, it is Time
recommended to endorse a
cheque as soon as possible
after receiving it. Endorsement for Partial Amount
Death of Endorser
Endorsement for
Partial Amount Joint Holding of Instrument
The instrument must be

endorsed for the whole Time
amount.
Section 56 of the Act, an
endorsement for a part of the Endorsement for Partial Amount
amount of the instrument is
invalid.
Death of Endorser
Death of Endorser
Joint Holding of Instrument
as per section 57 of the act, if
the endorser dies after
endorsing the instrument
payable to order without Time
delivering the same to the
endorsee, such endorsement
shall not be valid Endorsement for Partial Amount
Death of Endorser
General Rules Regarding Form of
Endorsement
Signature of Endorser Spelling No Addition or Prefixes and Suffixes

document must be The payee must sign Omission of Initial of to be Excluded
signed by endorser or his name in the exact Name Endorsements need
any other person on spelling as appears An initial of name not contain
his behalf. on the instrument. should neither be complimentary
if a cheque is paid by 2 added nor omitted prefixes or suffixes.
persons, both must from the name of the
sign in their own payee or endorsee as
handwriting. given in the cheque.
Endorsement

Endorsement

Endorsement

Kinds of Endorsement
Restrictive Endorsement
Blank Endorsement
Endorsement in Full
Endorsing a third-party cheque
Banker Endorsement
Restrictive Blank Endorsement

Endorsement
Endorsement in Full
most secure method of
endorsement of a cheque.
This method specifically instructs Endorsing a third-party cheque
the bank that the cheque should
be deposited into the account
identified in the endorsement.
Banker Endorsement
Blank Endorsement Blank Endorsement

least secure way to endorse a
cheque
Endorsement in Full
commonly used in our country as a
form of endorsement.
most common way to endorse a
cheque.
Banker Endorsement
Blank Endorsement
Endorsement in Full
The endorser puts his signature on Endorsement in Full
the instrument and writes the
name of a person to whom
the payment is to be made.
Banker Endorsement
Endorsing a third-party Blank Endorsement

cheque
If you receive a cheque and want to Endorsement in Full
give that cheque to a third party for a
payment you owe them, then you can
do this with an endorsement.
1.Write: Pay to the order of [Person’s Endorsing a third-party cheque
Name]
2.Then sign the cheque
Banker Endorsement
Blank Endorsement
Banker Endorsement
Bank endorsements are Endorsement in Full
guarantees from a bank that
ensure it will uphold the
commitments of its client.
Banker Endorsement
THANK YOU

Endorsement of Cheque PPT

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Endorsement of Cheque PPT

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CHEQUE

A cheque is a written order from one person

It’s like giving money to someone else to use

Endorser: person signing the instrument

Endorsing a cheque signifies

if the instrument is held

The instrument must be

Signature of Endorser Spelling No Addition or Prefixes and Suffixes

Signature of Endorser Spelling No Addition or Prefixes and Suffixes

Signature of Endorser Spelling No Addition or Prefixes and Suffixes

Signature of Endorser Spelling No Addition or Prefixes and Suffixes

Endorsing a third-party cheque

Restrictive Blank Endorsement

Blank Endorsement Blank Endorsement

Endorsing a third-party Blank Endorsement

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