What is Manager Cheque?
A manager Cheque is a secure payment order that issue for the individual or entity who has to purchase it from the bank. It is also called a treasury cheque or cashier’s cheque. Individual or entity deposit exact same amount in exchange for the cheque to pay for the third party. Or they can allow the bank to debit the balance from their bank account. Bank will ensure that enough cash is restricted before issuing the cheque.
The bank will secure the fund for the third party who going to present the cheque to the bank. Check is the guaranteed payment by the bank. The payee will be assured that the payment will be made whenever they present a check to the bank. It also helps the payer to avoid carrying a large amount of cash that is not secure. If the check loses at any point, we can contact the bank to replace a new one. The lost check will be voided so nobody can claim that payment.
Moreover, the payee can deposit this check at any bank or cash the check for immediate money. Check hold will not apply to this kind of check. The issuing bank has the obligation to pay to the holder, it is no longer the payer’s obligation as he/she already paid to the bank.
It is different from normal checks which require the issuer to maintain enough balance in the bank account. Without enough balance, check holder will not be able to withdraw the cash. Manager check will always guarantee the cash for the holder as the bank already debits from issuer account or the issuer deposit cash directly to the bank.