Definition

The act of converting a financial instrument, like a check or a draft, into cash.

Example

The encashment of the check took place at the bank yesterday.

Conversation

Have you heard about the new rules for encashment at the bank?

Yeah, I read something about it. It sounds a bit complicated.

I know, right? I just want to make sure I can still do my usual encashment without any issues.

Same here! I guess we should ask someone at the bank for clarification.

Synonyms & Antonyms

Root Explanation

Encashment is formed from "en-" (meaning to cause to be) and "cash" (from Old French *cachier*, meaning to store or hide). The suffix "-ment" (meaning the action or result of) indicates the process of converting something into cash. Thus, encashment refers to the process of converting a financial instrument into cash.

Memory Tip

Think of the action of 'causing to be' cash ('en-') — that's why encashment means converting something into cash.

Visually Confused Words