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Modern Banking System

1. Write the meaning of cheque. and state the various parties connected with the cheque.

Ans:-A cheque is a written order to the bank made by the depositor to pay a certain sum of money to the holder of such cheque or to the specified person or party on the cheque.

2. Write the parties of cheque.

Ans:-The parties connected with the cheque are as follows:

a. Drawer:-Drawer is the person who gives the order (write out the cheque.)

b. Drawee:-Drawee is the financial institution upon whom the cheque is drawn.

c. Payee:-The person or organization named to receive payment as per the cheque is known as the payee.

3. Mention any four qualities/features of a cheque.

Ans:-The following are the essential features of cheque:

a. Written document:-A cheque is a written order in which the name of the receiver, amount and date are clearly written.

b. Unconditional order:-A cheque is an unconditional order. The drawer or accountholder cannot add any condition on it.

c. Certain bank:-A cheque is issued only to a specified banker in which deposit is made to pay the amount.

d. Certain amount:-The cheque must be related to the payment of a certain sum of money but not the quantity of articles. The amount to be paid by the banker must be written clearly both in words and in figure in the cheque.

4. What do you mean by endorsement of cheque?

Ans:-The process of transferring the ownership of cheque from one person or party to another person or party by the way of writing someone’s name at the back of cheque is called endorsement of cheque. For this, the signature of endorser and the name of endorse is required.

5. What do you mean by crossing cheque?

Ans:-A cheque in which two parallel lines are drawn on left hand side across its face with or without special instruction is called a crossing of cheque. In this type of cheque, the payment will not be made by the bank directly to the payee.

6. What is bank reconciliation statement?

Ans:-Bank reconciliation statement is a statement which is prepared to reconcile the balance of cash book and bank pass book by finding the causes of difference between the two balances.

7. What is mobile banking?

Ans:-Mobile banking is a service provided by a bank that allows its customers to conduct financial transaction remotely using mobile devices such as a Smartphone and tablet.

8. What is Any Branch Banking System (ABBS)?

Ans:-Any Branch Banking System is a facility provided by the bank to the customers where the customers can operate their account from any branch of the bank.