Internet Banking Has Transformed The Banking Industry. It Has Eliminated the Need For Customers to Visit Bank For Various Services Like Fund transfers, Cash Withdrawl & More. With the Internet Banking Technology Advancement, People Now a Days Prefer Using Net Banking For their online Transactions.
However, Banking Instrument Like Cheque is Still a Significant Part of Banking. This Article Shares the Detailed Information about What is cancelled cheque & How To Make a Cancelled Cheque?
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What is a cancelled cheque?
A cancelled cheque is a Cheque That Has Two Parallel Lines “Cancelled” is written on it. In Simple Words, a Cancelled Cheque Refers to a Cheque that is Already Cancelled. This Cheque can Not Be Used to Withdrawl any Money. However, a Cancelled Cheque Act as Proof of Holding that Bank Account.
How to Write a Cancelled Cheque?
- Take a New Cheque That You What to Cancel.
- Draw Two Parallel Line Across the Cheque Leaf & Write CANCELLED in Between The Lines in BOLD Letters.
- Make Sure that the Lines Do Not Cover any Important Details Like Account Number, Name, or MIRC code.
- Do Not Sign the Cheque. All the details mentioned on the Cheque Works as Proof that You Hold an Account in That particular Bank.
Details Mentioned on a Cancelled Cheque
- Bank Name.
- Account Number.
- Account Holder’s Name.
- Name of Branch.
- IFSC Code.
- MICR.
Why We Use Cancelled Cheque?
A cancelled Cheque is generally Used as Proof That You Hold a Bank Account with That Particular Bank. Other than That, here are some of the situations When a Cancelled Cheque is Required.
- Applying For Loan – When You Apply for any Home, Car, or Personal Loan, the Bank Will Request You to Submit a Cancelled Cheque.
- Verify KYC Details – At the Time of Investing in Stocks or Mutual Funds or You are required to complete the KYC. The Investment organization will ask You for For a Cancelled Cheque To verify Your Account Details.
- EMIs – When you buy any item at EMI, your bank will ask you for a canceled cheque. The financial organization often asks for the Cancelled Cheque to process Your EMI request.
- Withdrawal of EPF – To Withdrawl any Money From EPF You are Required to Provide a Cancelled Cheque Along with other Necessary Documents.
- Insurance Policy – While Purchasing an Insurance Policy You are Required to Submit a Cancelled Cheque to the Financial Organization.
FAQ Cancelled Cheque
How to Write a Cancelled Cheque?
Draw two parallel lines across the cheque & Write CANCELLED Between the Lines in Capital letters.
What are the advantages of crossing a cheque?
The Two Parallel Lines Make sure that No one can Misuse the Cheque in any manner.
Is Signature Required on Cancelled Cheque?
No, You Should Not Sign the Canceled Cheque.