Today we are in an era where every second person is making use of technological advancement, especially in the financials & banking industry. In recent times, the ratio of usage of cheques has reduced in our day-to-day banking needs. But one cannot deny its importance as an authentic proof of transactions made between big corporations or organizations. Having said so, thus it gets vital to keep in mind the basics likes: How to write a cheque book, or how to write a cheque amount, etc whenever one prepares a cheque irrespective of the amount mentioned on it.
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How to write a cheque in India?
Many consider drafting a cheque is probably the easiest thing to do, as one just requires adding the signature in addition to mentioning the amount but even slight negligence can lead you to needless trouble just if you conduct silly mistakes here and there. In this write-up, let us get familiar with a few but most crucial basics like – how to issue cheque, or how to write cheque amount, and the common errors that one often conducts while writing a cheque.
There are a lot of basic things that one must not overlook while issuing a cheque in favour of someone. You must require considering different measures whenever you write a cheque in India. So, if your question is – How to write a cheque? Or How to write a cheque for cash? Then have a look at the points as discussed in the article.
Some Important point about a Cheque
Before we start, let us just have a look at the important points regarding a cheque:
1. Drawee bank or payee bank generally refers to the name of the bank.
2. The cheque has got the pay section, and here you require defining the payee name but ensuring the name is spelled correctly.
3. It is mandatory to cross the bearer option so that if the cheque is stolen, it cannot be paid.
4. It is always a good practice to mention the amount in words and then draws a line after mentioning the figure.
5. Once you write the amount in numbers, draw a line after the amount as it ensures that no one can make any alteration.
6. Do your authorized signature as a drawer.
7. MICR code refers to the Magnetic Link Character Recognition Code, which points out the bank and branch from where the cheque got issued.
How to write a cheque: A complete guide
1. Date the Cheque
This is one of the most vital components of any cheque, and you must mention it properly. Any negligence of writing a cheque without mentioning a date could be a disaster as anyone can just add any date and possibly that encash it at their will. Please note that in case your account has insufficient funds then try to give the cheque post-dated.
2. Address the Complete Name
Whenever you are issuing an account payable cheque, never forget to write the full name of the person and avoid the usage of any abbreviations or nicknames.
3. Cross the Cheque
In process of writing a cheque, just ensure to mark two parallel lines right at the top left corner of the cheque. Note that it is always good to write “Account Payee”, if you make it clear that the defined amount will only be withdrawn by a particular person or an organization, having an account in the bank.
4. Write the Payment Amount
Write the payment amount in numeric form in the small box on the right-hand side. Always write as far over to the left as possible. You also need to write out the amount using words to avoid fraud and confusion. Try to write using capital letters, which are harder to change. Be sure to write the payment amount clearly so the bank can subtract it correctly from your account. This is how to write a cheque amount in words.
5. Always Add Signature
A signature gives authenticity and is the most vital part of any cheque. It is ideally recommended to put your signature cautiously on the cheque because any mismatch to the signature you provided to the bank while opening the account, could stop the entire process, and the cheque would get invalid.
6. Don’t ever Sign-on MICR Band
Also, you must not sign on or over the MICR band, which is generally present right at the bottom of every cheque. MICR band is nothing but just a bank’s related numeric mentioned on the cheque’s bottom. Your cheque can get dishonored if you sign on the MICR band.
Points to keep in mind while writing a Cheque
Last but not the least, here are few more points on what to write on a cheque in India:
1. Never leave any spaces between words or numbers. Always keep in mind to never leave a space or gaps (in between) in process of writing numbers and words in the cheque, be it amount or any person’s/ organization’s name. An important point to note is that any gap in between might give any third person to add some alphabet or number. Chances get higher where you got to change the entire cheque.
2. Another key consideration that you must not forget is mentioning the amount of the cheque in words. The best you can do is always write “only” at the end. Also inside the amount box, once you have written the number specify “/-” at the end. You could even add a running line such as ——————— after defining the amount or the name in the cheque. This simple trick helps in ensuring that no one can further add or change anything after the name and amount thus restricts its misuse.
3. Avoid any kind of overwriting while writing a cheque. Covering our points on how to write a cheque in India, be very careful about not rewriting or conduct any sort of scribble, or cancel anything. Doing any such activity increases the chances of rejection of a cheque from the bank. However, if you had made any mistake, then it is ideally recommended to cancel the existing one and write a new cheque.
4. It is always going to help you mentioning your account number along with the mobile number on the reverse side of the cheque before you deposit or get it to deposit by any third person. So, write it.
Final Thoughts
I hope now you know how to write a cheque in India. Always ensure that you have an adequate balance in your bank account before issuing the cheque because in India, it’s is counted as a criminal fault if the cheque you issued keeps bouncing again and again. The next time when you issue any ac payee cheque, just ensure to keep the points that we had covered in the write-up as it restricts the misuse of a cheque.
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