Master the Art of Writing a Cancelled Cheque like a Pro
In order to verify a user's banking information, banks or financial institutions may request cancelled cheques as proof of a valid bank account. Primarily, it's imperative to understand the purpose of a cancelled cheque, how to correctly fill it out, and when it may be necessary for various financial purposes.
What Does a Cancelled Cheque Mean?
A cancelled cheque is a crossed cheque that contains two parallel lines with the word "CANCELLED" written between them. This prevents unauthorized use for financial transactions. Even though these cheques are voided, they still display sensitive information like account holder's name, bank account number, cheque number, MICR code, and IFSC code, which can be used for cybercrime. Thus, it's crucial to maintain security when handling and disposing of cancelled cheques.
How to Fill a Cancelled Cheque?
When submitting a cancelled cheque to a bank or non-banking financial company (NBFC), follow the given instructions below:
- Use a fresh cheque, leaving it blank without any additional information specifying payee's name, amount, and signature, etc.
- Draw two parallel lines across the cheque
- Write "CANCELLED" in capital letters in between the two parallel lines.
- Check that the parallel lines should not cross the crucial information such as account number, IFSC code, MICR code, account holder's name, bank's name, or address.
When is a Cancelled Cheque Required?
How to Cancel a Check?
To cancel a check, draw two parallel lines across it and write the word "Cancelled" between the lines. This invalidates the check and ensures it cannot be cashed.
When Do You Need a Cancelled Check?
Cancelled checks are often required for various purposes, including completing KYC requirements, opening a Demat account, investing in an insurance policy, processing EMI payments, or withdrawing EPF amounts.
Can Your Bank Cancel a Check?
No, your bank cannot cancel a check on your behalf. You must cancel the check on your own. If you do not have a check available to cancel, your bank will provide you with one for the purpose.
Can You Sign a Cancelled Check?
You should not sign or write any information on a cancelled check, including your signature, the payee's name, or the amount.
What Risks Are Associated With Cancelled Checks?
While cancelled checks themselves are not dangerous, they do contain sensitive information such as the account holder's name, bank name, IFSC code, and MICR that can be misused. Always exercise caution when handling a cancelled check.
Can You Use Red Ink to Cancel a Check?
No, only black or blue ink should be used to cancel or write a check. Other ink colors are not accepted by banks or NBFCs.
Can You Block a Check Leaf Online?
Yes, you can block a check by contacting your bank or logging into your bank's official website. This ensures that the check cannot be used or cashed.
-
10th Grade Science: Life Processes with Complimentary Ncert Solutions 2023-07-25 00:51:45
Solution: The inner lining of the small intestine undergoes a structural modification, forming villi, which are finger-like projections. These villi serve to increase the surface area for the absorption of digested food. Furthermore, they have a high vascularity, meaning they are well-supplied
-
Creating a Lovely and Simple Homemade Rakhi 2023-07-25 00:50:08
Creating Your Own Homemade RakhiThe glimmer in your eyes and the fervent desires in your heart paint a clear picture: you're filled with ideas for surprising your loved ones on Raksha Bandhan! Are you aware of what that entails? It means that Raksha Bandhan is fast approaching, leaving us with limited
-
10th Grade Science Life Processes: Access Ncert Solutions for Free 2023-07-25 00:03:33
Solution: The inner lining of the small intestine undergoes a transformation into tiny finger-like projections known as villi that enhance the surface area for the absorption of digested food. These villi are abundantly supplied with blood vessels, making them highly vascularized. Additionally,
-
10 Years - Information on Wikipedia 2023-07-24 02:56:26
A decade, which comes from the Ancient Greek word δεκάς (dekas) meaning 'a group of ten', is a span of ten years. Decades can refer to any period of ten years, whether it is someone's lifespan or a specific grouping of calendar years.Usage:Any period of ten years is considered a "decade". For