There are numerous reasons for which you will need to issue a cancelled cheque. The process of making a cancelled cheque is, now as you know, very simple. Ensure the parallel lines do not cover details, such as account number, account holder's name, MICR code, name and branch address of the bank, on the cheque.Write the word ‘cancelled’ in between the lines in block letters.Draw two parallel lines across the cheque.
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Ensure that you do not put a signature on it To write a cancelled cheque, you just need to follow the below-mentioned two simple steps. Now that you know what a cancelled cheque is, here’s how you can make a cancelled cheque that can be used as a document to help you process your applications. However, the details mentioned on the cheque remains valid and can be used to process various finance-related applications. Once you do this and cancel the cheque, you or anyone else cannot use it for any transactions. While issuing a cancelled cheque, always remember to write the word ‘cancelled’ on it. In order to prevent the misuse, you are required to cancel the cheque. However, issuing a blank cheque can be hazardous, as someone can easily enter an amount to retrieve money from your account. In short, every leaf of your cheque book has your account details, and thus, by issuing a cheque you can authorise someone to transact with your account.
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You need to do this to assure the financer that you have a valid bank account.įor a deeper understanding on why a cancelled cheque is necessary, how you can write one and when it comes handy, read on.Ī cheque features your bank account number, cheque number, IFSC code and the MICR code. In fact, you also have to submit it when you are shopping for items on EMI. It is important to know about this document as it comes in handy in numerous situations. Let us help you take control of your credit goals and unlock the door to your financial freedom.A cancelled cheque serves as proof that you have an account with a particular bank.
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