How do cheques work

A cheque is a negotiable instrument that acts as a written order directing a bank to pay a specific sum from the drawer's account to a designated payee. To work, the drawer must sign and date the cheque, specifying the amount in words and figures. Once presented to a bank, it undergoes a clearing process where funds are verified and transferred. Key security features like MICR codes ensure accurate processing. In India, cheques are typically valid for three months from the date of issue.