Been a while since you had to write cheques? You’re not alone. With the digital boom taking over the banking world, traditional modes of payments are becoming less prominent. However, cheques still maintain an important role today. That’s why it’s good to keep yourself in touch with the process of writing a cheque.
Here’s a quick step-by-step refreshing for you!
- Enter the date
On the top-right section of your cheque leaf, you’ll find a provision to add the date (i.e. the date you’re writing the cheque) in the DDMMYYYY format. Fill that in for starters.
- Payee details
Next, you’ll find a section that says “Pay” with a blank line against it. Here, you need to write the name of the invidual/company who you wish to pay via this cheque. Tip: Make sure you verify and write down the exact name of the payee as per their account details. This will help avoid any mismatches. Also, on the top-left of your cheque leaf, write “A/C payee” within double-cross lines; this is an additional step to ensure that your payment reaches the desired destination account
- Amount in words
Below the “Pay” section, you’ll find another section that usually says “Rupees”. In the line against that, write down the amount you wish to pay your payee in words. For instance, If you’re Rs. 100, write it this way: “Hundred Rupees Only/-“ Tip: Slash out any extra space after the words so that nobody can manipulate your cheque.
- Amount in numbers
Once you’re done writing the amount in words, you’ll have to do the same in currency format on the right of the cheque leaf. First, locate the ₹ symbol – you’ll see a box next to it where you can enter the amount. For example, if your amount in Rs. 100, enter it this way: Rs. 100/-
- Sign off
Finally, once you’ve verified all your details, add your signature to the cheque leaf. There’s a designated place at the bottom-right of the cheque just for this.
That pretty much covers the steps involved in writing a cheque.
With the boom of internet and online marketing, anything and everything under the sun is just a few clicks away. Just like every other business sector, even banking has gone all out in providing various services online, making lives easier for millions of customers. This includes Fixed Deposits, Savings Account and Loans. But even as online banking is growing exponentially, there are certain aspects of banking that need to be taken care of in a traditional way.
Issuing cancelled cheques is one such process that needs to be done manually. While everyone is aware of payment through cheques, young online banking customers tend to have doubts about cancelled cheques. So, let’s go ahead and clear your doubts!
What is a Cancelled Cheque?
A cancelled cheque in India simply refers to any cheque that has strike marks on it with the words ‘cancelled’ written across. A cancelled cheque is considered to be proof that you actually hold an account with the bank. From withdrawal of EPF funds to setting up an Electronic Clearance Service from the account, a cancelled cheque is required in many cases.
But before we talk about the use of cancelled cheques, let us tell you how to issue a cancelled cheque.
Issuing a Cancelled Cheque
To cancel a cheque leaf, all you need to do is draw two parallel lines across the cheque and write ‘Cancelled’ in between the two lines. A cancelled cheque doesn’t require your signature. It gives details such as account number, account holder’s name, MICR code, name and branch address of the bank.
Though no one can withdraw money from your account using a cancelled cheque, fraudulent activities using a cancelled cheque have happened in the past. So be very careful when you issue a cancelled cheque and make sure that the person you are handing it over to is extremely trustworthy. Got it?
Here’s a quick video that will give you a lowdown on all the important things that you need to know about a cancelled cheque:
Use of Cancelled Cheques
- Most investment organisations give utmost importance to Know Your Customer (KYC) guidelines. So if you are investing in Mutual Funds or the stock market, the company will ask for a cancelled cheque to verify if the account associated with the investment actually belongs to you.
- From purchasing of accessories like a mobile phone, TV or fridge to applying for a Car Loan, Home Loan, Education Loan, etc., EMIs have become the favourite mode of payment. And to set the process of EMIs rolling, a cancelled cheque is required as proof that you hold a bank account.
- A cancelled cheque is needed to set up the Electronic Clearance Service, which automatically deducts money from your account every month.
- To withdraw your provident fund amount, companies generally ask for a cancelled cheque with your name on it to validate your account details.
- Even while purchasing an insurance policy, a cancelled cheque is required.
Well, we hope that we have answered all your doubts about a cancelled cheque. If you are looking for some investment options, go ahead and explore!
thanks
Hi Venkatesh, You’re most welcome. Cheers, Team BankBazaar
While joining new company, do they ask for Cancelled Cheque?
Hi Anu,
You don’t have to provide a cancelled cheque if you’re joining a new company. Companies may ask for a cancelled cheque only if you’re withdrawing your EPF.
Cheers,
Team BankBazaar
Yes it depends! Most of the MNC’s provide you starters kit (for new employees company need an account to credit your salary, hence while on-boarding you, they invite different bank personnel to open a new account) whatever bank you may choose, that bank personnel may ask you a cancelled from your new kit.
Nope! they ask for salary slip or bank statement and PAN Card no.
Hi Prasad,
Thanks for stopping by and sharing such useful information. Keep reading our blog for more insights into the world of finance.
Cheers,
Team BankBazaar
Can we reuse a cancelled cheque for different services? For example, if an insurance agent asked me for a cancelled cheque leaf’s photo for getting an LIC, and then later some other person requires the same for another purpose, can I give the photo of the same (older) cheque leaf?
Hi Savvy,
Yes you can use the same cheque for multiple purposes.
Cheers,
Team BankBazaar
Thanks for the quick reply 🙂
Hi Savvy,
You’re always welcome. Have a nice day!
Cheers,
Team BankBazaar
Can anyone also make use of a Cancelled cheque leaf photo as well instead of a physical one? One of my insurane agents asked me for a cancelled cheque and he set up an ECS payment for a mutual fund SIP wihout me even signing any application form. I was shocked to see how my bank started debiting money from my account for mutual fund purchase just on the basis of a cancelled cheque without me giving any other authorization and for 2 consecutive months, the bank deducted some monthly charges for setting up the ECS.
From there on, I have been very vary of issuing a cancelled cheque. You never know how someone is using it and for what purpose. But I still believe, banks should have more rigorous authorization methods than just a cancelled cheque
Hi Rajiv,
An insurance agent cannot do this without your consent. Please reach out to your bank to cancel this instruction if you do not want to continue. Also, you can raise this with the bank’s manager to ensure this does not happen again.
Cheers,
Team BankBazaar
Thanks for sharing the useful information.It is really useful for me.
Hi Muthukrishnan,
Glad we could be of help. Have a nice day!
Cheers,
Team Bank Bazaar
thanks for sharing
couppay.co.in
Hi Soniya, You’re welcome. Have a nice day! Cheers, Team BankBazaar
I issued two cheques to purchase an insurance policy,one of them was cancelled cheque.But I found the policy was not good.The agent company told some untruth.So I went to the bank to stop the cheque.Bank stop one cheque.But cancelled cheque is still there.Can they withdrew any cash from it?
Hi Paramita,
There’s no need to panic. A cancelled cheque is considered as evidence that you actually hold an account with the bank. Money cannot be withdrawn using a cancelled cheque so you can rest easy.
Cheers,
Team BankBazaar
Thanks for the reply.
Hi Paramita,
You’re welcome. Have a nice day!
Cheers,
Team BankBazaar
Mere cheque main mera naam print ho k nhi aaya h aur mujhe jaldi hi cancelled cheque jama krna hai to kya mai bina apne naam print k cancelled cheque jama kar skti hun? ?
Hi Bunty,
This might be possible but we suggest that you check with the bank to be sure.
Cheers,
Team BankBazaar
Hi I’ve resigned from a company and my bank branch is in some Chennai. Currently I’m working in Kolkata, can I still get 2 cancelled cheques from my base branch if someone from my behalf goes to bank to get it? I’m ready for any kind of mobile or voice verification?
Hi Prince Tiwary,
You should be able to avail a cheque book online through netbanking services offered by your bank. Irrespective of where you live, your bank will mail your chequebook to you.
Cheers,
Team BankBazaar
thanks
Hi Om Vishnu, You’re welcome. Keep reading our blog for more articles like this. Cheers, Team BankBazaar
Hi,
Do I need to mention the date on the cancelled cheque.
Hi Arohi, No, you don’t have to mention the date. Cheers, Team BankBazaar
If we give any snap shot of cancelled cheque to any kind of policy. Are they automatically cut the money from the respective bank account. which was in the cheque .
Hi Raghu kiran,
A cancelled cheque cannot be used to debit money from your account.
Cheers,
Team BankBazaar
Hi Bank Bazaar
I think you must verify this fact. I have shared this in an earlier comment, I issued a cancelled cheque to one of my insurance agents and he was able to successfully set up an ECS monthly transaction just on the basis of a cancelled cheque without me signing any other form or authorizing a payment and the money started getting debited from my account. Shocking!!!!
Hi Rajiv,
Hope we’ve answered your query. Have a nice day!
Cheers,
Team BankBazaar
Is it safe if my previous employer is asking for a cancelled cheque because I am withdrawing my pf. Also, do I have to visit a bank for this? What if I don’t have a checkbook. Will bank provide me the cancelled cheque on its own or I have to carry my checkbook. Kindly answer. Its urgent
Hi Geeta Sharma,
You don’t need to visit your bank for a cancelled cheque. Just use your cheque leaf to make one. It’s safe to provide a cancelled cheque as long as you don’t sign it.
Cheers,
Team BankBazaar
Thank you for the information Bank Bazaar.
Hi Sreekar, You’re welcome! Cheers, Team BankBazaar
Hi i am borrowing money from another person .so there are asking me a Cheque leaf as a proof ,can i give cancelled Cheque to them??
Hi Annapurna,
A Cancelled cheque is used only to ensure that you hold a particular account. One should never sign a cancelled cheque. Please check with the person why they need a cheque leaf from you. The person might actually be looking at encashing the cheque if you don’t pay them back.
Cheers,
Team BankBazaar
I have applied for loan through Axis Bank and the representative is asking to provide 4 cheque to process the loan.
Is it safe to provide them one ? If yes, then what all things should i keep in mind before doing that ?
Thanks in advance
Hi Param, If the bank has asked you for a cancelled cheque, kindly provide it. It is completely safe. Cheers, Team BankBazaar
Can we use one cancel cheque for two or more times
Hi Siddesh, You can use the same cancelled cheque more than once. Cheers, Team BankBazaar.
Hi, I have to give a cancelled cheque to open a trading account. So that I want to know that is it necessary to obtain a cancelled cheque by bank Only? Or could it be done by self? Which one is the best? I am little bit confused…
Hi Siddharth, You have to provide the cancelled cheque to the bank. Banks will not give you any cancelled cheque. Cheers, Team BankBazaar.
Sir,
Can I give “Stop payment” instruction to Bank for the cancelled cheque issued as an extra precaution
Is it against any rules of the Bank ?
Hi Kusa, A cancelled cheque cannot be used for making any transaction. So you need not worry about giving “Stop Payment” instructions to the bank. Cheers, Team BankBazaar.
Thanks for the info!
Hi Rajat, We’re glad you found this useful. Keep reading our blog for more insights into the world of finance. Cheers, Team BankBazaar.
Can we use Cheque where the customer name is not printer and it’s simple cheque for Cancell cheque purpose specially i want to use in LIC Office for Auto Credit and Auto Debit Purposes.
Hi Manish, Sure, you can use it. Cheers, Team BankBazaar
I need to issue a cancelled cheque for opening NPS account. Recently I had changed my home branch from say A to B. I have cheque book with details of branch A. Can I use the same cheque to issue the cancelled cheque? Or it is really necessary to get new cheque from branch B?
Hi Pradeep, You’ll have to get new cheques from your new branch. Cheers, Team BankBazaar
how can i cancelled a valid cheque
Hi Adarsh,
The process of issuing a cancelled cheque has been explained in this blog post. Please let us know if you have any further queries.
Cheers,
Team BankBazaar
Can we present a photo of cancelled cheque made by pencil ,than use it next time erase the pencil mark
Hi Amardeep,
Ideally, a cancelled cheque using pencil isn’t accepted. However, if it has been accepted, then you can use the same cheque for other purposes after erasing the pencil mark. A cancelled cheque is usually demanded to establish the fact that you are the owner of the particular account and to collect details of your account for future reference.
Cheers,
Team BankBazaar
I signup for payment gateway for my website, and they asking me cancelled cheque. This post is very helpful for me.
Hi Rohit,
We’re glad you found our article informative. Keep reading.
Cheers,
Team BankBazaar
Sir i required cancel cheque for admission so sir i dont’t have cheque book and i required cheque argently for admission so sir what can i do ?? Plzzz help me
Hi Simran kadbe,
Please reach out to your bank to grant you a cheque book.
Cheers,
Team BankBazaar
Hi, I need to upload a cancelled cheque photo on Paypal. What if I scan it and then write ‘Cancelled’ on it inside Photoshop in a way that it looks authentic and actually written on the paper this way I will still have a clean actual cheque which I can use later on. Basically photoshopping the word Cancelled and still preserving the actual cheque that can be reused.
I was curious regarding this as I have only one cheque left and a new book will take maybe few days to deliver.
Thanks,
Akshay
Hi akshay,
We are not sure whether this is acceptable. Please check with a chartered accountant.
Cheers,
Team BankBazaar
Can i use Cancelled cheque of my old cheque book ( old IFSC code and branch address) for opening NPS account at eNPS ?
Hi Chirag,
Thanks for stopping by. The cancelled cheque that you provide while opening an NPS account should belong to the account where you would like to receive the withdrawal money or the maturity proceeds. Therefore, it has to be an active account, preferably one that you regularly use. Hope this information helps you!
Cheers,
Team BankBazaar
Thanks for this information. I recently applied for LIC policy and my agent asked for cancelled cheque from me. I was in doubt if my cancelled cheque could be misused fraudulently but now I am assured it can’t. THANKS
Hi Rohit,
We’re glad you found the article to be of great use. Keep reading our blog for more insights into the world of finance and keep those comments coming! 🙂
Cheers,
Team BankBazaar
Pretty portion of content. I simply stumbled upon your site and in accession capital to assert that I acquire in fact loved account your blog posts.
Any way I will be subscribing for your feeds or even I fulfillment
you get right of entry to constantly rapidly.
Hi Orlando,
We’re glad you found our article useful! Keep reading our blog for more insights into the world of finance.
Cheers,
Team BankBazaar
Hello sir, when I award work order for contracts in Private Construction Company, with some procedures they ask me cancelled cheque, is it good or anything may be wrong later…
Hi Ramesh,
It’s perfectly safe to share a cancelled cheque. Since the cheque is cancelled, the recipient will not be able to withdraw any funds from your account.
Cheers,
Team BankBazaar