Do’s and Don’ts of writing a Cheque in India

Filed Under: Banking


Do’s

  • 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

Don’ts

  • 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

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