How to use bank cheque book


How to use bank cheque book: Principles and dynamics had been published on Financengr

How to use bank cheque book: Principles and dynamics had been published on Financengr

The growing need and importance of cheque in banking is overwhelming given that all customers cannot make it to the bank at the same time, thus the invention of the process to ease bank transaction.

This guide will teach and give a detailed information on principal things you need to know about bank cheque book, other than withdrawal.


A cheque is an instrument that orders the bank to pay a specific amount of money from a person’s account called the drawer to another whose name is being written on the cheque called the payee. Cheque is usually issued on a current account as well signed by the drawer.


These are the details a drawer is expected to have written on the cheque leave being issued to the payee, they include but not limited to: Amount to be paid, date, name of the payee/beneficiary and signature which duly authorizes the drawee/bank to pay.

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Cheques are usually classified according to the instruction of the drawer, the below represent the common types in practice:

  • Open cheque: A cheque is said to be open if the surface is not crossed with two lines either by the drawer or by default. Such cheques are considered very risky as they can be presented by anyone who claims ownership in line with drawer instructions.
  • Crossed cheque: This is a type of cheque where the drawer specifies the payee as well makes two crossed lines on the cheque, could as well be on default. This type of cheque is not usually paid across the counter, rather into the payee’s account. A closed cheque can however been thrown open by signing twice between the two lines drawn at either corner of the cheque by the drawer.
  • Anti- Dated cheque: This is a cheque which its payment date is earlier than the date of its presentation for payment.
  • Post- Dated cheque: This is a type which its date of payment is still ahead, these type of cheques are usually not honored, and the payee will either wait for the date ahead or contact the drawer.
  • Staled cheque: A cheque is considered to be stale after six months from the date of issuance, the bank as well has the legal obligation to dishonor such cheques.

Example: Say Mr. KC Don issues a cheque of N100,000 to his contactor Mr. Emeka Okoli, dated 2nd February, 2018, by virtue of any delay, the cheque was not presented until say 4th September  2018, it’s in the bank’s capacity not honor such cheque as it’s now stale.


To own a cheque you will formally notify your bank through request or application in writing. Kindly walk into any branch of your bank, head straight to the customer service unit and demand to apply for acheque book.

You will be required to indicate how many leaves you want, your request will be processed, you will be contacted as soon as your cheque book is ready.

The availability of Mobile and internet banking has made it possible for customers to apply for bank cheque book from the comfort of their homes. Internet and Mobile banking now has these features installed.


Prior now, the practice and use of bank cheque book was confined to current and corporate account holders, however, some banks inline to meet current trends and customer demand had introduced cheque book for some class of savings account, these cheque books however do not go for clearing.

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It’s highly recommended that customers should immediately report any bank cheque book lose to the bank, to stop such cheque from causing further damages of any kind through fraudulent withdrawal.


A cheque is said to be dishonored if the bank refuses to pay such cheque /or the amount on the said cheque to the payee.

A bank cheque can be dishonored in the following capacity:

  • If the amount stated on the cheque exceeds the balance in the account.
  • If the drawer’s signature is irregular.
  • Should name of the payee be omitted in any way?
  • If there’s disparity between the amount in words and that in figure.
  • On the express authorization of the bank by the drawer to halt the payment.
  • Should a law court of competent jurisdiction order the bank to stop such payment.
  • If the cheque is presented on a closed account.
  • Should there be an information on lunacy or death of the drawer.
  • If the date is staled or not dated at all.


This is a cheque issued on insufficient or unfunded account.

Example: If a bank customer say Dr. Martins Bright issues a cheque of N50,000 to his friend Mr. Brown Smith, if the amount on the account is less than N50,000 or say about N40,000 such cheque is termed a bounce cheque.


The importance of cheque in contemporary banking cannot be overstressed, thus brought about a seamless way to carry out bank transactions. It however has the following importance:

  • Ease of personalization: This enable business owners, companies to customize cheque according to their brand.
  • Batch processed: This enable customers to make post –dated cheques that as well help them leverage on time to credit their account.
  • Trust: Creditors tend to trust their methods of payment as it has been in practice over the years
  • Safety: Only the bearer can cash the cheque, this safe guides the fund.
  • Ease of carrying bulky money around that could attract thieves or robbers.


Like I explained above, the drawer is the cheque owner, who operates an account with the bank called the drawee. This is the bank paying the amount on the cheque to the payee on the instruction of the drawer.


Traditionally there’s no special way to write a bank cheque than feeling in the appropriate columns contained therein. However a newbie will be required to pay apt attention while feeling or writing the cheque either to effect withdrawal himself or issuing to a third party. Consider the following steps:

  • To start writing a cheque, you are required to start from left to write in a modern conventional English writing.
  • Fill the columns this way, the first line on the cheque says Pay————————— in this column, kindly write the name of the payee/the person who your cheque meant to pay. The next column says the sum of————————- this column requires you write the amount to be paid in words. The next column is in triangular form depending on the banks though, here you’re required to write the amount in figure. Then sign your signature below where provided, but do not cover any of the numbers in three series below your cheque leave.
  • If you operate a closed cheque and wants to open it for the payee, kindly sign in between the default lines. This way, the payee can withdraw across the counter other than paying into his/her account.
  • Turn the cheque over leave and write your instruction either to pay or not to pay the payee with an ID card, if you choose he gets paid with an ID card, kindly specify in line with the ID the payee has to be paid with to avoid stressing him/her. Having done this tear the cheque leave out from your cheque, complete your own side with the amount issued and date for reference purpose. Hand in the cheque to the payee to head to the bank, that’s all. Isn’t that simple?


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Check clearing is the process where cheques go for settlement as a result of being received and paid by non- issuing banks.

Example: Say a customer “A” bank’s with XY bank, then issues XY bank’s cheque to a customer “B” who banks with GH bank. The customer B now takes the cheque to his GH bank, he can only pay this cheque into his account and not cash across the counter.

Now the process is this: His bank GH will commence the process of cheque clearing so that the money can be credited to his account. This process usually takes upward of 4 days to complete initially tagged as T+3 I.e when the cheque was received plus additional three days.

But the trend has changed now, it’s now T+1 i.e the day received plus one day sometimes could even clear within 24hrs.

Bank GH is actually trying to clear bank XY cheque using the inter-bank settling system connected by the CBN. To clear this cheque it as well passes through truncation, this is making it liquid.

Cheque clearing system in Nigeria involves cheque truncation for payment by the clearing house. This inter- bank settlement system is created to settle payments among banks. Cheque truncation has however helped in reducing cheque clearing period from T+3  to T+1. Check


I hope you’ve learnt a lot on this article, this is a master guide to Bank cheque book and its use, definitely you’ve learnt something you never knew before on this blog today. I will like to draw the curtain at this point, we however love comments and urge you to use the comment box below to share your experience or ask questions you deem necessary as we are available to respond to you almost immediately. Don’t forget to like and share this article, it’s your turn now.


3 comments on “How to use bank cheque book: Principles and dynamics had been published on Financengr

[…] How to use bank cheque book: Principles and dynamics had … […]

[…] be sure that all cheques written against such account have all been cashed prior to account […]

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