WorldAugust 2, 2026

encashment

en-KASH-ment

Definition

The act or process of converting an instrument, such as a check, bond, or bank guarantee, into physical cash or its equivalent value.

Etymology

The word is formed by combining the prefix 'en-' (meaning to put into or make) with the noun 'cash' and the suffix '-ment', indicating an action or result.

In the news

In the article, the term is used to describe the Customs Department's act of converting bank guarantees into liquid funds, which the court reviewed for legality.

Know Thy Judge | Supreme Court of India: Justice Ujjal Bhuyan’s distinguished career and notable judgments

Read the full article ↗

SCC Online

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