What Is A Cancelled Cheque?

By Bank Bazaar | September 19, 2017

Everything you need to know about a Cancelled 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?

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!

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55 thoughts on “What Is A Cancelled Cheque?

    1. Team BankBazaarTeam BankBazaar

      Hi Venkatesh, You’re most welcome. Cheers, Team BankBazaar

      Reply
    1. Team BankBazaarTeam BankBazaar

      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

      Reply
    2. Prashant Dikshit

      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.

      Reply
  1. Savvy

    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?

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Savvy,

      Yes you can use the same cheque for multiple purposes.

      Cheers,
      Team BankBazaar

      Reply
        1. Team BankBazaarTeam BankBazaar

          Hi Savvy,

          You’re always welcome. Have a nice day!

          Cheers,
          Team BankBazaar

          Reply
  2. Muthukrishnan

    Thanks for sharing the useful information.It is really useful for me.

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Muthukrishnan,

      Glad we could be of help. Have a nice day!

      Cheers,
      Team Bank Bazaar

      Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Soniya, You’re welcome. Have a nice day! Cheers, Team BankBazaar

      Reply
  3. Paramita

    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?

    Reply
    1. Team BankBazaarTeam BankBazaar

      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

      Reply
        1. Team BankBazaarTeam BankBazaar

          Hi Paramita,

          You’re welcome. Have a nice day!

          Cheers,
          Team BankBazaar

          Reply
  4. bunty

    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? ?

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Bunty,

      This might be possible but we suggest that you check with the bank to be sure.

      Cheers,
      Team BankBazaar

      Reply
  5. Prince Tiwary

    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?

    Reply
    1. Team BankBazaarTeam BankBazaar

      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

      Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Om Vishnu, You’re welcome. Keep reading our blog for more articles like this. Cheers, Team BankBazaar

      Reply
  6. Arohi Sharma

    Hi,
    Do I need to mention the date on the cancelled cheque.

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Arohi, No, you don’t have to mention the date. Cheers, Team BankBazaar

      Reply
  7. Raghu kiran

    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 .

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Raghu kiran,

      A cancelled cheque cannot be used to debit money from your account.

      Cheers,
      Team BankBazaar

      Reply
  8. Geeta Sharma

    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

    Reply
    1. Team BankBazaarTeam BankBazaar

      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

      Reply
  9. Annapurna

    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??

    Reply
    1. Team BankBazaarTeam BankBazaar

      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

      Reply
  10. Param

    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

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Param, If the bank has asked you for a cancelled cheque, kindly provide it. It is completely safe. Cheers, Team BankBazaar

      Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Siddesh, You can use the same cancelled cheque more than once. Cheers, Team BankBazaar.

      Reply
  11. Siddhaarth

    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…

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Siddharth, You have to provide the cancelled cheque to the bank. Banks will not give you any cancelled cheque. Cheers, Team BankBazaar.

      Reply
  12. Kusa Kumar

    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 ?

    Reply
    1. Team BankBazaarTeam BankBazaar

      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.

      Reply
    1. Team BankBazaar

      Hi Rajat, We’re glad you found this useful. Keep reading our blog for more insights into the world of finance. Cheers, Team BankBazaar.

      Reply
  13. Manish Kumar Modi

    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.

    Reply
  14. Pradeep

    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?

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Pradeep, You’ll have to get new cheques from your new branch. Cheers, Team BankBazaar

      Reply
    1. Team BankBazaarTeam BankBazaar

      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

      Reply
  15. Amardeep

    Can we present a photo of cancelled cheque made by pencil ,than use it next time erase the pencil mark

    Reply
    1. Team BankBazaarTeam BankBazaar

      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

      Reply
  16. Rohit Agarwal

    I signup for payment gateway for my website, and they asking me cancelled cheque. This post is very helpful for me.

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Rohit,

      We’re glad you found our article informative. Keep reading.

      Cheers,
      Team BankBazaar

      Reply
  17. Simran kadbe

    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

    Reply
    1. Team BankBazaarTeam BankBazaar

      Hi Simran kadbe,

      Please reach out to your bank to grant you a cheque book.

      Cheers,
      Team BankBazaar

      Reply

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