encashment
Definition
- Noun:
- The act of converting a cheque, bond, or other financial instrument into cash: "encashment" refers to the process of receiving money in exchange for a written promise of payment, such as a cheque or a money order.
- The realization of value from a negotiable instrument: It specifically denotes the moment when a financial document is presented and cash is given in return.
Usage Examples
- (The act of converting the cheque into cash.)
- (He asked to receive cash for his bond.)
- (The process of turning traveller's cheques into cash.)
Advanced Usage
"encashment of a draft": the cashing of a bank draft.
- The encashment of the draft was delayed due to a signature mismatch. (The cashing of the draft was postponed.)
"encashment facility": a service offered by banks or financial institutions to convert instruments into cash.
- The branch offers an encashment facility for foreign currency cheques. (The branch provides a service to cash foreign cheques.)
Variants and Related Words
Encash (verb): to convert a cheque or other financial instrument into cash.
- She needed to encash the cheque before the weekend. (She needed to cash the cheque.)
Encashable (adj): capable of being converted into cash.
- This bond is encashable after five years. (This bond can be cashed after five years.)
Synonyms
- Cashing: the act of exchanging a cheque for cash.
- Liquidation: the conversion of assets into cash (broader term, often used for investments).
- Redemption: the repayment of a bond or other security for cash (often used for bonds or shares).
Related Idioms
"Cash in": to convert something into cash (informal synonym).
- He decided to cash in his savings bonds early. (He decided to encash his savings bonds before maturity.)
"Turn into cash": to convert an asset or instrument into cash.
- The encashment process turned the cheque into cash instantly. (The process made the cheque become cash.)