How to Fill Cheque Correctly?
Step by step guide to fill a Cheque.
In this article I am going to discuss how to fill a bank cheque correctly. If you fill it correctly you will never get into any trouble. After going through this aticle, you will learn the correct way to Fill Cheque. Additionally, you will learn some important points that you should take care of at the time of filling Cheque.
A cheque is a typical printed form, bearing individuals bank account details, to request bank to pay a specified amount from his/her account to the customer whose name is written on the cheque. A Cheque is a major non-cash payment technique for making payments.
Know Your Cheque:
You should know the details printed on your cheque such as, cheque number, cheque ID, MICR code, and etc.
In the below figure a nationalized Bank (HDFC) cheque is shown. All nationalized banks cheques are similar in look except color and theme.
1. Top of the cheque numbered as (1) is IFSC Code. All bank branches who allow National Electronic Fund Transfer holds Indian Financial System Codes (IFSC). To transfer money electronically, IFSC Code of your bank’s need to be mentioned.
2. Your bank account number is mentioned on your bank cheque numbered as (2). and at the bottom right corner you can see your name.
3. Date of issue of the cheque you need to fill numbered as (3).
4. The bottom line of the cheque you will find some numbers. The First 6 digits are cheque number (4).
5. Next, 9 digits are your MICR code stands for Magnetic Ink Character Recognition. MICR code helps machine to understand the cheque belongs to which bank and where it is located numbered as (5).
6. Next, 6 digits means Account ID. That shows bank account details numbered as (6).
7. Then, Transaction ID numbered as (7). It helps, machines to knows whether your cheque is a local cheque or payable at par at all branches.
8. Number 8 is the cheque holder name. At the time of issue a cheque you need to sign above the name, without sign it is invalid.
Important points to remember at the time of filling cheque.
1. Do not issue a bearer cheque, because if you lost the cheque, anyone can withdraw cash with the cheque.
2. If you do not issue a bearer cheque, then only the person whose name is written on it can cash it.
3. Fill the empty space by outing a line left after writing the payees name so that no one can add his/her name.
4. Likewise, put a line in the empty space after the amount to be paid, so that no one can modify the amount by adding any digit.
5. To be safe always issue a account payee cheque so that the amount is paid only in account. To do so, write ‘A/C Payee‘ at the top of the cheque
How to fill a cheque?
As already mentioned all banks cheques have same details. So, no matter what bank’s cheque you are going to fill, you can flow the following cheque filling technique.
1. Write name of the payee next to ‘Pay’. Write ‘Self‘if you want to use the cheque to withdraw money from your own account.
2. Write amount in word, you want to pay through cheque in ‘Rupees‘section.
3. Write the amount in numbers in the given box.
4. Sign above your name mentioned in the cheque. Same signature available with the bank.
5. Cancel ‘Or Bearer”. If you do not cancel it then anyone can use the cheque to withdraw money.
6. Write cheque issue date. Note: you can put any date, say you want to pay it after 1 days from today, just put that date. In that particular date only the bearer can use the cheque.
7. Draw 2 parallel lines on the top of the cheque and write ‘A/C Payee‘ between them.
1. What is a self Cheque?
When the account holder fills a cheque to withdraw money for himself, it is known as self cheque. Owner writes ‘Self’ (in payee’s field) on the cheque.
2. What is bearer Cheque?
A cheque that is payable to anyone whosoever carry it to the bank is called ‘Bearer Cheque’.
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