Anonymous
Anonymous asked in Business & FinanceTaxesIndia · 1 decade ago

what does cheque payable at par means?

8 Answers

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  • Anonymous
    1 decade ago
    Favourite answer

    To give u an example i am delhi and u are in bombay. u send me a cheque issued on your banks branch in Bombay. I deposit the same in my account in a bank in Delhi. I pay outstation collection charges. But If the cheque issued by u bears a notation payable at par i dont pay any outstation collection charges. i hope u get my point,

    This facility is not confined to dividends alone as suggested by other people I will try to explain the same with another example. I have an account with , say, ICICI bank in green park, in Delhi. U are in Patna. If ICICI bank has a branch in Patna, the cheque witl be cleared as a local cheque and u get the full value as written on the cheque . But if ICICI bank has no branch in Patna the cheque will go for outstation clearence and u will pay collection charges and my cheque will no longer be said to at par. The cheques given for dividend and refunds are cleared at par at only certain places ( cities )and not all over India.

  • Anonymous
    1 decade ago

    Cheque Payable at Par means the amount mentioned in the instrument would be payable to payee without deducting any charges. Many banks now a days extend this facility and the at par cheque can be used as a draft.

  • Anonymous
    1 decade ago

    ' Cheque payable at par' means that you can get the full value of the cheque credited to your account without deduction of any kind of bank charges. when presented for collection. Usually this phrase is followed by where it is applicable like "payable at par at all branches' or 'payable at par at the branches mentioned overleaf' etc

  • When you present your cheque (MULTI-CITY CHEQUE Payable at Par at all Branches of SBI) at any other city where the SBI banking service is available the full value of the cheque shall be credited to your / bearer account without any deduction (Collection charges) . This service would not be available between the banks(Between SBI and any other Banks or vice versa) and the term of collection charges would be applicable. It means this payable at Par at is restricted to that particular type of Bank only.

    Source(s): Pratap K M
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  • 1 decade ago

    Payable at par means (usually mentioned in the refund orders / interest warrants issued by companies etc)- The cheque or warrant is payable at par (without any commission) by presenting to the concerned bank in clearing.Generally the words "PAYABLE AT PAR AT ALL BRANCHES OF (name of the bank).printed in the instrument

  • king
    Lv 4
    1 decade ago

    It means that even if the issuing banker and the drawee banker are located in different cities or towns, still the cheque will be treated like a local cheque and will be payable at that branch of the issuing banker, where the drawee banker is located.

  • Anonymous
    1 decade ago

    This means the amount that is mentioned is to be paid full without charging any charges to him.

    for ex: If u recieve a cheque of dividend payable then u are paid the full amount without any charges

    Source(s): Self
  • 1 decade ago

    Cheques presented in local clearing house and are paid without collecting charges.

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