What is a manager's cheque

A Manager's Cheque is a secure payment instrument issued and guaranteed by a bank on behalf of a customer. Unlike a personal cheque, where funds are drawn from an individual's account at the time of clearing, a Manager's Cheque is prepaid. The bank debits the amount from the payer's account upfront and issues the cheque from its own funds, ensuring it cannot bounce due to insufficient balance. It is commonly used for high-value transactions, such as real estate purchases or vehicle bookings, where guaranteed payment is required.