Who is a bearer in cheque?

Pro tip

Look at a cheque from any bank. You might have seen the words “or bearer” written on it.

This should always be cancelled before you give the cheque to anyone.

But why?

A bearer check can be transferred to anyone on delivery. Meaning, the bank needs to give the money mentioned to whoever presents it at the bank. This can be risky as it can be misused by anyone who finds the cheque encashing it.

However, if the words “or Bearer” are cancelled on the cheque, only the person whose name is mentioned can encash it.

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Who is a bearer in cheque?

Pro tip

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