What is a Blank Check? And disadvantages of Blank Cheque

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What is a Blank Checksome people still don’t know what is a blank check. So, it is a cheque which is signed by the account holder as a matter of trust. A blank check has nothing written on the cheque, which means no date etc. A cheque has the only signature on it, nothing else.

Blank checks may be useful for many reasons.

  1. Businessman signs a blank cheque because they don’t want to any disruption in the business.
  2. The employees can withdraw the money for the business matter, even in the absence of the company’s owner.
  3. Some people give someone a signed blank check as a guarantee of a conditional payment.

The disadvantages of Blank Check:

But sometimes it could be problematic the person having the cheque can betray. The employee can write any amount if the employee is not trust-worthy. A blank signed cheque is like having the key of the treasure in a trunk.

The disadvantage of the blank check is that anyone having the cheque can get the cash. Because the cashier will match the signature if the signature is authentic, he will pass the cheque.

Make sure not to keep blank signed cheques in the open area at home. If the checks are misplaced, anyone can use them just because of the sign on it.

Cheque contains information like amount, date, amount in words, etc. The check without any signature or date anything written on it is also called the blank cheque.

What does it mean to write a Blank Check?

The person whom you are giving he should write the amount according to his/her desire. This check is proof of the trust that you have on the person.

A blank check can cause problems if not given to the write person.

How to get a Blank Cheque?

If the account holder is short of checks, and the account holder has an urgent need for a cheque. The bank will print all your information on a counter check, which you can use for that immediate purpose.

Otherwise, you have to order a new checkbook to write a check.

Counter checks are used only in rare cases; otherwise, you have to withdraw your money from your ATM Card.

Note :

Nowadays, the use of a check is infrequent, but for business purposes, the businessman is still using a cheque.

These checks help in getting a significant amount, which is not possible from ATMs.

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