Question

Write short notes on the importance of a cheque.

Answer 1

1. Convenience: A cheque is a very convenient method of making payment. There is no need to count and check notes when payment is made by a cheque.
2. Safety: The use of cheques for withdrawing money from a bank account ensures safety. The cheque can be crossed to ensure that payment is made only to the bank account of the payee.
3. Easy Transfer: Cheques facilitate the transfer of funds from one place to another and from one country to another. The transfer of funds through cheques is easy, safe, and cheaper than any other method of transfer.
4. Receipt: Payment by cheque serves the purpose of a receipt also. It is a valid proof of the payment made.
5. Credit: Cheques facilitate credit, which is helpful to the growth of trade and commerce in the country.
6. Money Saving: The use of cheques leads to savings in the use of currency notes.