With a boom of the internet in every industry, everything is just a few clicks away. Just like every other sector banking is also online. However, issuing a cancelled cheque is still done via a manual process. It is very essential to have a cancel cheque handy in some situations. Many people are aware of the importance and the uses of a canceled cheque. However, some online banking customers still have doubts regarding the same. So for a deeper understanding, let’s clear all your doubts. Read on!
What is a Cancelled Cheque?
Cancelled cheques work as proof that you have an account opened in a particular bank. It features a bank account number, cheque number, and a MICR code. By issuing a cheque you can authorize someone to transact the amount to your account. However, issuing a blank cheque can be dangerous someone can misuse and transact loads of money from your bank. Hence, to prevent this misuse, cancel cheque is required. In India, any cheque with strike marks on it with the word “Cancelled” written on it is considered as a cancelled cheque. There are various reasons where a cancel cheque is required. Let’s have a quick look at that.
- If you are buying something luxurious or anything on EMI then you have to submit a cancelled cheque to your financier or bank.
- To withdraw the amount from your provident fund you need to submit a cancel cheque to the company.
- While applying for a loan you are required to submit the cancel cheque.
- If you are investing in any mutual fund, insurance policy, or provident fund then you are again required to submit a cancelled cheque.
These are some of the major reasons why it is important to have a cancelled cheque and it is completely safe.
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How to Make a Cancelled Cheque?
With the help of the aforementioned information, you are now aware of the cancel cheque and its uses. So now it is also important to know the accurate way to make a cancelled cheque.
- Firstly, pick a fresh cheque from your checkbook
- Secondly, draw two big parallel lines on the cheque try to draw it in center
- Make sure that these parallel lines do not cover any information written on the cheque such as account number, MICR code, Bank’s name or address, etc.
- Now write Cancelled word in capital letters between those parallel lines
Consequently, by following these simple steps you can make a cancel cheque. And that will eventually help you in processing your further documentation.
How to Cancel a Cheque?
We discussed the steps above regarding how to cancel the cheque. By using these steps you can cancel a cheque. You should always use a blue or black pen while cancelling a cheque. Any other color is not acceptable. As it doesn’t require your signature so there is no risk in cancelling a cheque and submit it further. Ensure that striking two lines with the word “Cancelled” written on it will only be considered as a cancelled cheque. Either of these is missing will directly lead to rejection and you will have to submit a fresh cancelled cheque.
We hope that with the help of this article, your doubts are clear. So now that you are aware of what is cancelled cheque, how to make it, and its uses, you can surely enjoy a smooth banking experience. Go ahead and explore the investment opportunities!