How to enCash a Cheque? Complete Process with Possible Cases

Complete guide to explain how to enCash a Cheque? The full process with possible cases included in the article to help those looking for the valuable info.


In our day to day life, whether you’re a student or professionals, or service provider, you will need to deposit a cheque someday or the other. 

A cheque can be issued to anyone, whether a company/firm or individual, to pay a sum of money. The payment can be for products, services, or any other affairs between two parties or persons. 

In the case of business transactions, cheques play a vital role in secured and risk-free payments.

There are two options available, the first is cash payment, and the second one is the cheque payment.

Therefore, in this article, I will explain to you how to deposit a cheque, or you can say how to encash a cheque. 

Cheque Encashment Process:

If you already receive a cheque, first of all, you need to confirm which types of cheque you received.

If you received the cheque from an organization or institution, there are possibly three types of cheques that can be issued.

  1. Bearer Cheque
  2. Account Payee Cheque 
  3. Bankers Cheque or demand drafts 

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Case (1):

If it is a bearer cheque, you need to approach the concerned bank and your valid proof of identity such as PAN Card, Passport, Driving license, Aadhar card, etc., as the bank may ask you to present the identity proof at the time of withdrawal of money.

However, sometimes bank representatives don’t ask for identity proof; nevertheless, you should carry your identity proof for your convenience.

You will have to sign the backside of the cheque and present it to the bank. The bank will examine the authenticity of the issued cheque, verify your proof of identity and then make the payment to you as specified.

Case (2):

If you are issued an account payee cheque, you should have a bank account with your exact name to encash such types of the cheque. This is because the account payee cheques can be paid only in the bank account of the payee. Some cheques are redeemable at a specified bank only, so you need to make sure you must have a bank account in said bank.

Moreover, the banker’s cheque and demand drafts are also payable to the payee account only. 

If you still don’t have a bank account, you need to open a bank account in any nearby bank. Once the account is opened, you need to fill the deposit slip (available in the bank) and attach the cheque with the deposit slip. 

Now you can either directly submit to the bank (bank staff) and take the proof of submission or drop the cheque into the cheque drop box along with the deposit slip.

Don’t forget to mention your account number, name, and mobile number on the backside of the cheque. You would think about why I suggest you say the above details. So this is because the cheque has been separated from the deposit slip, the bank staff may contact you in case they require any more information.

Case (3):

If you have a bankers cheque or demand draft (DD), the process is the same as account payee cheques. You can fill out the withdrawal slip and put it into the cheque dropbox.

The banker’s cheques or demand drafts are issued to the favour of certain people; hence if it is issued with your name, you can easily encash it. Please note that both DD and bankers cheque is the account payable, not like the bearer or other types of cheques

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Process of Cheque Clearing:

As soon as you deposit the cheque into your account, it’s details are entered into the bank software. Then your respective bank sends it to the initially issued bank in which the issuer of cheque holds the account for verification of signature and cheque and the available balance in the account.

Further, as soon as the issuer bank confirms the account holder’s balance amount and signature, the amount is credited to your account. At the same time, the issuer (who issued the cheque) account is debited with the same amount. 

The entire process mentioned above typically takes 2 to 3 working days depending upon distance, banks (same bank or different bank), and bank service. If the cheque issued and your bank account are of the same bank, it might take a shorter time to be clear.

However, the Reserve Bank of India introduced the Cheque Transaction System (CTS) for business account holders for faster clearance of cheques. The CTS service is available only in a few metro cities; hence, the entire cheque clearance process might take 3-5 days.

Wrapping Up:

I hope this guide will help you to understand the encashment process of cheques. Make sure that all details should fill correctly; otherwise, the cheque will not be cleared. The cheques are negotiable instruments that facilitate transactions between two parties or business organizations. 

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