Cheque Misuse – If you also use Cheque book, then definitely read this news. Today we are going to tell you some important things related to Cheque book in this news.
In this era of digital banking, Cheque transactions continue even today. However, most of the financial institutions pay the amount directly into the account of the people. You must have often seen that canceled Cheque is asked in the bank for loan, office salary or any other financial matter.
This question must have come in your mind as to why a canceled Cheque is asked for. It actually means that you have an account with the bank to which you have given the cheque.
The name of the account holder, the name and address of the bank branch, the account number and the IFSC code of the bank are mentioned on the canceled cheque. Overall, before payment, it is ensured that the concerned person has an account with this bank. But where the cancellation should be given and how it should be issued must be known.
How to issue canceled cheque-
Remember canceled Cheque are never signed. Always cancel the Cheque by drawing two parallel lines and write ‘Cancelled’ on it and give it to the bank or the office where it is required. Actually, banks, offices or other companies take the demand of canceled Cheque to verify the account of the customer or employee.
No one can withdraw money from your account with a canceled cheque, so don’t worry that you may face any kind of financial loss if you issue it. But remember, never sign a canceled cheque. Since all the information related to your account is present on the cheque, do not give it to any person.
The right way to issue a canceled Cheque-
Since it is known to everyone that on the check, two parallel lines have to be drawn and “Cancelled” written on it, but only black or blue ink is used for this. Because ink of any other color is not acceptable.
Where is the need for a canceled Cheque-
When you do any work related to financial matters, a canceled Cheque is asked. Lenders ask for a canceled Cheque from you while taking a loan from the bank. At the time of new joining in the office, cancel Cheque is required while withdrawing money offline from provident fund, from employee for salary. Apart from this, while investing in insurance companies and mutual funds, companies also ask for canceled Cheque information.
