Cheques are classified as follows from different purposes:
i. Bearer and Order Cheque: When the words "or bearer" appear on the face of the cheque after the name of the payee, the cheque is called a bearer cheque. The bearer cheque is payable to the person specified therein (i.e. the payee) or to anyone else who presents it to the bank for payment. Such cheque is risky; because if it is lost, the finder of the cheque can collect payment from the bank.
Order Cheque: When the word "bearer" appearing on the face of a cheque is cancelled or 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).
ii. Crossed Cheque / Uncrossed Cheque: Crossed Cheque: Crossing on a 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 encased at the cash counter of the drawee bank but it can only be credited to the payee's account.
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.
iii. Post Dated or Stale Cheque: 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. For example, a cheque is written on the 14th of the July 2015 month but dated the 28th of the July 2015 will not be encashed till 28 July 2015
Stale Cheque: If a cheque is presented for payment after three months from the date written on the cheque, it is called stale cheque. A stale cheque is not honoured by the bank.
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 up to three months from the date of the cheque.
