Account Payee cheque meaning: When two parellel lines are drawn on the top left corner of the cheque with words a/c payee or ac payee only, then such cheques are deemed as account payee cheques. Like other cheques account payee cheque can’t be encashed at cash counter rather it needs to be deposited in the account of the person named in payee. After the cheque is successfully deposited in the account of payee, then only it can be encashed.
Advantage of account payee cheque: Account payee cheque add a layer of security and safety in the cheque payment process. In case, if this cheque gets lost from the drawer, the finder of the cheque, can’t get it encashed at the cash counter. Account payee cheque prevents payment of cheque amount to a wrong person. Thus providing safety and guaranteed payment to only payee. In order to get paid through account payee cheque, the payee must have a bank account. Payee bank account name should only be mentioned in the payee column of cheque.
How to draw account payee cheque: Firstly, draw cheque in normal way as it is generally drawn. Then, on the top left corner of the cheque, draw two parellel lines and write the words ac payee or ac payee only.
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