In the era of rapid technological advancement, especially in the financials & banking industry, I am sure that most of you will NOT be using cheques as a part of your day to day banking needs. But still it is important to keep in mind the basics while writing down a cheque.
Writing a cheque probably seems to be an easiest thing to do, but let me tell you that it may lead you in unnecessary trouble in case you do silly mistakes here and there.
Let’s understand, what is a cheque?
A cheque is a mechanism which allows people to access the fund in their bank accounts. You can use this either to withdraw cash or to transfer funds to some other account by transferring a cheque.
Today we are going to discuss the key points to be keep in mind while writing a cheque.
So, here’s a list of 5 steps-
1. Date – A cheque should be properly dated. Writing a cheque without a date may enable anyone to put any date and encash it at their will. This may be a big problem in case there is an insufficient fund and you intended the cheque to be post-dated. Moreover a wrongly written date, like a wrong year or a month may result in dishonour if the date is past three months.
2. Name-Write the name of the person or organisation who will receive your cheque in the “pay” line.
3. Cross the Cheque -You need to make two parallel lines in the top left corner of the cheque and write “Account Payee” if you want the amount to be withdrawn by a specific person or an organisation, who is having the account in the bank.
4. Account Number– Ensure your cheque has an account number and the bank address on the cheque. Nowadays it is mandatory that each cheque leaf should carry your name or names if it is a joint account.
5. Signature– Put your signature carefully on top of your name in the cheque as it has to match the signature you provided to the bank while opening the account.
Always keep your cheque book in a safe place and never pre-sign your blank cheques.
Key points to be keep in mind
a. Never do overwriting in a cheque
b. Mention your mobile number and account number at the backside of the cheque while depositing
c. When writing amount in words, always write “only” at the end. Also inside the amount box, after you have written the number specify “/-“ at the end.
Last but not the least, make sure that you have enough balance in your account before issuing the cheque because it’s considered a criminal offence if issued cheque bounces.