Europe[ edit ] In most European countries, cheques are now rarely used, even for third party payments. In these countries, it is standard practice for businesses to publish their bank details on invoices, to facilitate the receipt of payments by giro.
How to write a cheque in India? But there some simple things we overlook while writing out a cheque to someone that can easily be misused.
We write it so many times to pay bills, make payments etc. But there are times when people make the most obvious and sometimes careless mistakes while writing a cheque that can easily result in frauds or cheques being misused or dishonored.
Let us see what the correct way to write a cheque is and how to avoid mistakes while writing a cheque. You can also find an informative post on Why a cheque bounces or gets dishonoured, over here Understanding various parts of a Cheque: What is an MICR code?
Where is the Cheque Number located on a cheque? Is there an IFSC code on a cheque? If you have asked yourself these questions, then here are all the answers. It can be very basic but sometimes the most basic things are the ones which are most overlooked.
This image below is of a dummy cheque which covers everything you see on a cheque, it is pretty self explanatory. Writing a Cheque the correct way? For understanding the ways to write a cheque correctly, we have a typical situation where you have to pay some fictional person Mr.
Joy Johnson a sum of Rs. So now let us get down to seeing how we can write all the details correctly. Imagine if a cheque is lost, all this comes in to play.
Do not leave any space before or in-between the Name of the Receiver. Do not leave blank space after the Name is written: Doing this can give anyone a chance to add alphabets before or after the name like in the images below and claim the money. Same can be done if you leave space after writing the name.
Why Women can be great with Personal Finance? If you do not follow the above; amounts can be altered easily by the fraudster. In the image below you can see how easily certain amounts can be forged by people if the Cheque Issuer is careless.
Alphabets can be added and even numbers.
Note the cheque number, date, amount and the payee in the cheque ledger given at the front of the cheque book. ATM / Cash Cards & Debit Cards You will normally be issued with a cash card and cheque book for each account that you open. In addition, writing the cheque properly also prevents the risk of frauds on your cheques. Not to mention that banks charge a few hundred rupees as a fine, for cheques that get bounced due to non-financial reasons. Frequently Asked Questions on Cheque Usage. General Cheque Issuance; General Cheque Deposit; Click here for instructions on how to write a cheque. An alternative way of depositing cheques into an account without .
Always sign on the space provided above the Authorized Signatory text or The Name of the Account Holder as in the image below. Writing a cheque without a date can enable anyone to put any date and encash the cheque at their will. This can be a problem if you do not have sufficient balance in your account right now and intended the cheque to be a post-dated cheque when that amount maybe available.
The cheque will be dishonoured. Also a cheque without a date will not be passed by your bank and again will be dishonoured.
Also a wrongly written date, like a wrong year or a month can often result in dishonour if the date is past 3 months. Always remember to not overwrite, scribble or cancel anything and then rewrite on a cheque.
If mistakes happen try to rectify without scribbling, and if not possible, cancel the existing cheque and write a new one carefully. Keep the records of your cheques: Always keep a record of the cheques you issue to people or cancel.
Note down the cheque number and amount paid along with the name of the Payee and the Date of issue. Usually cheque book comes with a section for all this information at the back. Fill in the details and keep it handy to cross check any suspicious activity, future records, or possible fraud.
A properly written cheque can be found in this image below. Destroy all cancelled cheque unless they are used for any specific purpose like for submitting for ECS etc.
Never Handover a cheque without entering all three: Date, Payee name, Amount of Cheque in words and Numbers. Sign clearly and if needed sign twice as seen in the image aboveto make sure the cheque is not bounced for a mistake in signature.
Write the Credit Card Number, Connection Number, Mobile Number etc on the reverse of the cheque in case of payments being made towards bills for utilities.Crossed Cheque: Crossing of cheque means drawing two parallel lines on the face of the cheque with or without additional words like “& CO.” or “Account Payee” or “Not Negotiable”.
A crossed cheque cannot be encashed at the cash counter of a bank but it can only be credited to the payee’s account. In addition, writing the cheque properly also prevents the risk of frauds on your cheques. Not to mention that banks charge a few hundred rupees as a fine, for cheques that get bounced due to non-financial reasons.
A cheque is a document that orders a bank and its branch to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. it has an account number. The drawer writes the various details including th. To write a cheque to transfer from your own bank account in one bank to your own account in another you need to simply write a cheque in your own name and deposit in another.
For instance write a cheque from your ICICI bank cheque book in your name and deposit the same in HSBC account. Frequently Asked Questions on Cheque Usage. General Cheque Issuance; General Cheque Deposit; Click here for instructions on how to write a cheque.
An alternative way of depositing cheques into an account without . Step 1: Date: Without a date your cheque will justnot be cleared, period. You will be surprised to know, how many actually forget to write the date, at times the correct date.
You will be surprised to know, how many actually forget to write the date, at times the correct date.