How to Write a Cheque- a Step-by-Step Guide to Follow

You are required to include the date that the withdrawal will be processed.
It is important that the date be expressed in the format of DD/MM/YYYY.  For example 12/08/2022 (August 12, 2022).

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.

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.

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.

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.

• Date of payment
• Name of Beneficiary (Payee)
• Written amount
• The signature on the passbook should be the same
• MICR Code

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.

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.

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.

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:

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.

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.

A self-cheque is a type of cheque that allows the account holder to cash his own cheque or withdraw money from his own 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.

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 the course of 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.

A traveler’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.

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 in order to verify specific financial facts regarding businesses or people.

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.

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.

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 a huge and elaborate designs. Awards at tournaments for cricket, football, and tennis are typically given out in the form of cheques.

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.