What is a close cheque?

A close cheque, often referred to as a "closed cheque," is a type of cheque that is marked as non-negotiable, meaning it cannot be transferred or endorsed to another party. It typically indicates that the funds are to be paid directly to the payee named on the cheque, ensuring that the payment remains secure and is only accessible to that specific individual or entity. This type of cheque is often used for business transactions or payments where security is a priority.