Difference between an Ordinary Cheque and a Travellers Cheque Ordinary Cheque Travellers Cheque For issuing a cheque a person No need of any bank account for should have a bank account (either purchasing and encashing of current or saving). travelers cheques. Any amount can be filled in the Have a fixed amount printed on its cheque as they are blank face and available in different denominations. Only one signature is needed of the Two signatures are required (one holder in the presence of issuing authority and second in the presence of encashing authority) Ordinary cheques are valid only for Valid for indefinite period of time 3-6 months unless dated. These cheques can be crossed for No such provision. account payee No slip/list of lost, damaged or Many banks issue a stop list or stolen cheques is issued by bank. stolen and damaged cheques. Cheque may bounce as the balance No such possibility as the amount in account may be less than the is already printed on the face of cheque amount. the cheque. Not safe as someone might force Quite safe because the second the owner to sign the cheque. signature has to be put in front of the encashing authority.
Difference between an Ordinary Cheque and a Travellers Cheque Ordinary Cheque Travellers Cheque For issuing a cheque a person should have a bank account (either current or saving). Any amount can be filled in the cheque as they are blank Only one signature is needed of the holder Ordinary cheques are valid only for 3-6 months These cheques can be crossed for account payee No slip/list of lost, damaged or stolen cheques is issued by bank. Cheque may bounce as the balance in account may be less than the cheque amount. Not safe as someone might force the owner to sign the cheque. No need of any bank account for purchasing and encashing of travelers cheques. Have a fixed amount printed on its face and available in different denominations. Two signatures are required (one in the presence of issuing authority and second in the presence of encashing authority) Valid for indefinite period of time unless dated. No such provision. Many banks issue a stop list or stolen and damaged cheques. No such possibility as the amount is already printed on the face of the cheque. Quite safe because the second signature has to be put in front of the encashing authority.
FO-MANJU-III-SEM.docx