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
- 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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