Bank Cheque Tips: Cheques are still an important part of the banking system. Be it a business transaction or personal payment, people still rely on cheques for big transactions. But cheques are a very sensitive document, in which even a slight mistake can get your money stuck. Many times people make such mistakes in carelessness which directly become the reason for the cheque bouncing. Cheque bouncing not only damages your reputation but it can also be a legal offense.
Enter the correct date
The date written on the cheque is the first thing that the bank cheques while clearing the cheque. The validity of the cheque is only 3 months. If the old or wrong future date is written, then the cheque may be rejected. If you are giving a Post-Dated Cheque (PDC), then the cheque will not be cleared before the due date.
Write the name of the payee clearly and correctly
The name of the person or company to whom the payment is to be made in the cheque should be written clearly and correctly. Avoid any kind of overwriting. Spelling of name can also result in cancellation of cheque. Only “Bearer” or “Self” can be written, but clarity is important.
There should be no difference between amount in numbers and words
The amount is written twice in a cheque – once in numbers (₹25000) and second time in words (Rupees Twenty-Five Thousand Only). There should be no difference between the two.
Sign correctly
Your signature should match with your bank records. In case of a mismatch, the bank rejects the cheque. Overwriting or error in signature can also cause the cheque to bounce.
There should be balance in the account
If the account does not have the amount mentioned in the cheque, then it becomes the biggest reason for cheque bouncing. This not only causes financial loss but can also lead to legal action under Section 138 of Negotiable Instruments Act.
Do not overwrite
Cheque is a sensitive document. Cutting, adding or rewriting any entry is considered suspicious. This makes the bank think that the cheque has been tampered with, and the cheque gets rejected.
Do not tamper with the micro lining and IFSC code of the cheque
There is a micro-printed lining at the bottom of the cheque which contains bank details, cheque number, IFSC code etc. If this part is dirty or torn, the cheque will not be read and will get rejected.
Use ‘A/C Payee’ and ‘Non-Negotiable’ correctly
If you want the cheque to go to the account of that person only, then definitely write ‘A/C Payee’ and ‘Crossed Cheque’ on the cheque. This reduces the chances of the cheque going into the wrong hands.
Do not leave any blank space
Fill the blank space on the cheque or draw a line, so that no one can add anything later. This is an important security measure which can be risky if ignored.
Avoid sketches or folding on the cheque
Many times people fold the cheque and thus it gets damaged. Due to this, the bank machines are unable to scan it and reject it.
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