Commenting on some people having to use cheques when they were moving out or into their units, SMU Assistant Professor of Finance (Education) Aurobindo Ghosh said, “Cheques can be used for down payments for houses, security deposit with letters of intent for tenancy agreement, et cetera. We do observe certain bigger-ticket items, where the transaction needs documentary proof, may be settled with cheques as it keeps a record of the transaction (unlike cash) and does not have an upper limit of the amount paid (unlike possibly for some digital payments).” As cheques are valid for six months from the date of issue, deferred payments can be made with post-dated cheques, which makes them similar to an informal futures contract, Asst Prof Ghosh noted.
