In this step-by-step guide, you will learn how to fill a cheque, What are the details required to fill a cheque leaf, What are Important factors to remember while writing a cheque etc.
How to write a cheque: Complete Guide
Cheque writing is a simple yet essential skill that everyone should be familiar with. When we are writing a cheque to someone, we often neglect a few simple details that make it easy for the cheque to be cashed fraudulently.
To pay the bill, make a payment, etc., we have to write it so many times. However, carelessness on the part of the person writing the cheque can easily lead to fraudulent activity or the cheque being rejected.
We no longer use chequebooks since we conduct all of our financial transactions online through Internet banking.
In this day and age of mobile banking and Internet banking, we no longer require chequebooks to deposit or withdraw money.
If you do need to use a chequebook, though, there may come a time when you are concerned about how to properly fill it out.
There may be anything incorrect with the check that we just filled out. But you have nothing to worry about because the next article will teach you how to write a check.
What are the details required to fill a Cheque leaf?
A cheque has a front and back page.
All your details like your branch, address, IFSC code, Account number, cheque number, MICR code, etc are printed on the front page of the cheque, so you don’t have to worry about making any mistakes.
You need to fill in only the name of the name of the person to whom you are permitting the withdrawal of the money, withdrawal amount, and date.
If other parties are going to withdraw the money on our behalf, write the name of the party on the front page of the cheque.
How to fill the chequebook?
Fill in the following particulars carefully in the blank spaces on your cheque leaf.
Cheque Date:
You are required to include the date that the withdrawal will be processed.
The date must be expressed in the format of DD/MM/YYYY. For example 12/08/2022 (August 12, 2022).
Payee’s Name:
You have a responsibility to provide the name of the person who will be making the withdrawal from the bank.
It is necessary to write “SELF” in the Payee area of the cheque if you intend to withdraw the money.
The identity of the payee is critically significant because, once they have possession of the check, dishonest individuals cannot put a new name on it or otherwise alter its purpose.
Amount in words:
To get the most accurate representation possible, write the amount in words and in full capital letters.
Be sure that you do not leave any vacant spaces that are too large and that may potentially fit extra letters in between them.
Amount in Figures:
To get the most accurate representation possible, write the amount in words and in full capital Always write the amount in the square box using the appropriate format, and mention it whenever you can.
Don’t write Rs. 4523; instead, write Rs. 4523/- minus the decimal point.
Simply follow the slash with a hyphen, as seen in the above example.
Make sure that the amount in words and figures is the same. The sign above the printed name of the drawer in the lower right corner of the cheque.
Also, ensure that the cheque is signed as per the signature given in the bank account.
As soon as you have finished filling out the cheque leaf, you will be able to move on to the next step, depositing the cheque to either make the payment or for the cash withdrawal.
Additionally, make a note of the information that is contained in the acknowledgement part of your chequebook for your future reference.
In that case, you risk losing track of the person to whom you handed the cheque.
Cheque Validity
There is a validity period of three months for a cheque. If you have money in your account at any point during the three-month term, you can also present the cheque at any time during that period.
Do you have to write down your full name on the cheque?
Yes, your name should be written out on the cheque the same way as in the passbook.
If you want to take the money out of your account, you must re-sign the cheque using your complete name on the reverse side of the cheque.
Important factors to remember while writing a cheque
- Date of payment
- Name of Beneficiary (Payee)
- Written amount
- The signature on the passbook should be the same
- MICR Code
What are the rules of the cheque?
Before making payment against the cheque, when the beneficiary submits the cheque for encashment, the banks collate with the details available in the issuer’s cheque, so while filling out the cheque, write the details correctly as in your passbook.
Also, the signature you gave at the bank should be the same as the one you signed in the cheque. The details are compared with the details provided to the bank through Positive Pay.
What is a Self Cheque?
A self-cheque is a cheque in the drawer’s name. In this case, the drawer and the payee are the same. You have to write the word ‘self’ in the namespace on the cheque.
It can be submitted only to the drawer’s bank. A self-cheque is for use when you want to withdraw money from your account.
Can I write a cheque to myself?
The most common question is whether you can write a cheque yourself. But the answer is yes. However, it can be a bit more complicated than that.
If you are trying to move funds between two banks yourself, you can write yourself a cheque.
One thing to note, if you write a cheque to yourself, but you don’t have funds in your account to cover it, the cheque will bounce.
The bank will be charged enough fines from you. So write the cheque only after looking at the bank balance.
You can transfer funds online from one bank to another, so there’s no need to write a cheque. But it may take up to three days to get your money online.
A cheque may be faster if you visit the bank to cash it or deposit it.
Types Of Cheques
Different types of cheques are issued in the Indian banking system. Most people do not know about it and the features of the cheque.
Below are the details about the different types of cheques:
1) Bearer cheque:
A bearer cheque is a type of check that can be cashed for money without the bearer, any person mentioned on the cheque, or any other person’s authorization or identification is required.
2) Order Cheque:
An order cheque is created from a bearer cheque when the issuer of the bearer check decides to cancel the bearer cheque.
Checks for placing an order should be made payable either to the person whose name is shown in the beneficiary column or to any other individual whom the original beneficiary has allowed.
3) Self Cheque:
A self-cheque is a type of cheque that allows the account holder to cash his cheque or withdraw money from his account without the assistance of another person.
In the beneficiary column of the self-cheque, write “SELF” in place of the actual name of the person receiving the funds.
4) Crossed Cheque:
An account payable cheque, also known as a crossed cheque, is created when the upper corner of an issued cheque is crossed twice with two parallel lines.
This transforms the cheque into a crossing cheque.
It is impossible to deposit an Account Payee check anywhere other than the beneficiary’s bank account.
During completing commercial transactions, merchants often utilise these types of cheques, which are regarded as the safest type of cheques and are used to pay employee salaries, unpaid invoices, and other expenses.
5) Traveller’s Cheque:
A traveller’s cheque is a special kind of cheque that people take with them when they travel internationally so that they don’t have to worry about their money being stolen.
6) Canceled cheque:
When the account holder completely crosses out the cheque, it is transformed from a normal cheque into a cancelled cheque.
Cheques that have been paid back are sometimes required to verify specific financial facts regarding businesses or people.
7) Post-Dated Cheque:
If the drawer plans to make a payment of a certain amount to any person or institution on a certain day in the future, then they will need to write a check that is post-dated.
A check that has been post-dated is only valid for payment on a particular date that is in the future and cannot be cashed before that date.
8) Blank Cheque:
In the case of a commercial transaction involving the signing of an open-ended contract with a firm for dealerships, bills, or any other services, a blank cheque is the payment instrument of choice.
9) Gift Cheque:
Gift Cheques are a specialised form of a check that is used for awarding prizes, such as cash or other items won in competitions or other types of unique occasions.
Gift cheques have huge and elaborate designs. Awards at tournaments for cricket, football, and tennis are typically given out in the form of cheques.
10) Mutilated Cheque:
Mutilated cheques are those cheques that have been damaged due to any reason, especially in the MICR code. A mutilated cheque cannot be encashed due to the authenticity of the cheque.
How we can fill the cheque?
In the upper right-hand corner, write down the date. Your check will not be cashed if no date is written on it.
Write the name of the recipient – It is essential to write down the name of the individual or business for whom the check is being issued.
In the rectangle box, using the correct notation, you should always write the amount, and you should specify the amount.
Amount in Words– you will need to write the amount in letters on the line that comes after the term “RUPEES.” The number should be written as a word.
Put your signature on the check on the designated line that is provided. – Place your signature on the cheque directly above your name, which is already printed on the cheque.
