Cancelled Cheque Methods, Uses, Sign, KYC

As the digital transaction rise but as with the demonetization. The various modes of transactions have been increasing at a desirable rate amount. Online transactions and e-banking use are also booming. with the advent of the schemes and the technology. The government and privates banks to provide online banking access.

In the article below you will get the information about the cancelled cheque. The uses and the sign and various queries with the cheque.

What is blank Cancelled Cheque?

Cancelled Cheque

| SarkariNiti

How to write a cancelled cheque?It is basically a cheque on which the two parallel lines are drawn diagonally on the cheque. And the word cancelled is written in between the parallel lines on the cheque. As shown above in the sample image.

What does a cancelled cheque actually mean?

The candidate has the bank account with the bank as the name of the bank is indicated on the cheque. Usually, cheques are not signed. But in some cases, the bank can ask you to sign the cancelled cheque.

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The cheque can be issued to the bank or elsewhere you need. Below you will know what happens when you issue a cancelled cheque:

Uses	Explanation
Proof	It contains details of the bank account and various other details. It also classifies the given account with the bank.
Accurate details	All the details in the Cheque are accurate.
Details available	Details which can be extracted from the cheque:
	1. Bank Name
	2. Account Holder Name
	3. Number of Bank Account
	4. IFS Code as IFSC stands for Indian Financial System Code)
	5. MICR Code (MICR stands for Magnetic Ink Character Recognition)

Method of issuing a cancelled cheque

 It is very easy to use the Cancelled unique. The steps for the same are as follows:

1. You can get the Cheque book and the facility to get the cheque book of the same account as on the cheque.
2. Blue or Black Pen can be used to draw parallel lines drawn diagonally across the cheque. The lines should be far and in the space between for writing.
3. Write the word cancelled in the space as mentioned above point. You have to write cancelled in the capital letters. Candidate can also use sentence use. It can be as CANCELLED  or in sentence case as  Cancelled.

Do I need to sign Cancelled Cheque?

1. As there is no need to sign the check. The bank and other organization asking the cancelled cheque ask for signature then you can sign it. You can also cross check with the officer of the bank regarding the same.
2. Ask for the written statement which asks you to sign the cheque. It should be on the letterhead of the organization.

Signature on cancelled cheque

A cheque is only for the bank details. Once you Cancel the cheque. It becomes valueless. It is no longer valid and a bank will not accept it for any other bank transaction. So that no fraud activities can take place.

Uses of Cancelled Cheque

Why Cancelled Cheque is required?

Cancelled Cheque can be used for the following mentioned. Check the reasons to use the cancelled cheque.

• To open the new bank account. As cancelled cheque can be used for opening the new saving account. Even in case you already have an account.
• The candidate can also use it as the KYC. It is Know Your Customer.
• For the ECS Collection. It stands for the Electronic Clearance System. As it is a method for attaining the clearance from the service provider and investment company. The company would debit a certain amount for your bank account.
• To get the things on EMI. such as the items of daily use. The candidate would be asked to give the cancelled cheque for the deduction of the EMI from the bank account.
• To withdraw the EPF from the matured account. Or even in the case of the premature withdrawal. You need to give the duly filled form along with the canceled cheque. The details will be used for the Employees Provident Fund Organisation to credit the amount to your bank account.
• For the disbursal of the Loan which you have taken for various needs such as education, marriage, home purchase. As the loan is not issued in the form of the cash. You have to give it in the bank account.
• To attain the benefit of the insurance policy. You have to give the account details in the form of the cancelled cheque. So that the transfer of the amount can be possible in the bank account.

Fraud of Cancelled Cheque

Is Cancelled Cheque safe?

It is safe as no transaction is possible from the bank account. But still, the fraud can be possible. As it contains all your information such as

• Bank account number
• Account holder’s name
• IFSC
• MICR
• Name of bank
• Name of bank branch etc.

Once you put a signature on the canceled cheque. It can be misused by the fraudulent. So in case, you have to give the canceled cheque. If someone asks for cheque Signed. Then get the written statement from the concerned company or organization. Even in case of individual statement for future use. In case to avoid fraud activities.

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