Do’s and Don’ts of writing a Cheque in India
- Make sure that you always fill up the cheque yourself. It is never recommended to take others help in writing a cheque. If you still find yourselves in a situation where you have to hand it over to others for filling it due to some disability, at-least make sure that you know the basics listed here and they have been adhered to.
- Cancel the words “or bearer” & write “A/c payee” on the top-left corner to avoid cheque misuse. you can even make a cross, instead of mentioning the words “A/c payee”. note that a crossed cheque can be further endorsed by the payee in favor of some other person unlike a bearer cheque.
- Write “only” after amount in words and put “/-” after the amount in numbers.
- Write clearly and legibly & always use permanent ink pens such as a ball pen in blue or black colour
- Sign only in space provided above the ‘name of the account holder’ or ‘authorized signatory’ fields.
- Sign clearly to ensure the cheque is not bounced due to mismatch in the signature
- Strike through unused space in the name and amount fields to avoid any unauthorized additions
- Validate the identity of third party if handing over cheques for any loan or insurance offering
- Ensure your account has sufficient funds before you issue a cheque
- Report loss of cheque leaves to bank immediately and request stop payment. If multiple cheques are lost, request stop payment on the entire series
- In the event of any alterations/corrections, a new cheque leaf should be used
- Write “cancelled” clearly across the face of the cheque to suitably deface it and make it unusable
- Do not leave wide blank spaces in fields like payee name, amount in words and numbers
- Do not overwrite, scribble, cancel or rewrite on a cheque
- Do not keep pre-signed blank cheque leaves
- Do not disfigure or damage the MICR band at the bottom of the cheque in any way