Cheque Payment Tips: Nowadays it is the era of digital. Money can be easily sent with just one scan. Even in this era, many people still make payments through cheques. In such a situation, negligence with the cheque in a hurry can lead to huge losses, so it is very important to keep some things in mind.
Cheque Payment Tips: Digital is dominant in India. Now most of the people in the country have started using digital payments. But even today many people use cheques for big transactions. In such a situation, it is very important to keep many things in mind while issuing a cheque. Even a small mistake can lead to huge losses.
Negligence with the cheque in a hurry can prove to be costly. Cheque is a powerful financial instrument through which there is convenience in money transactions. Before signing any cheque, you should know who the person to whom you are giving the cheque is and what is its purpose?
A signed cheque can be misused at any time. Sometimes money is withdrawn by filling the amount in it. Due to this, you may have to face huge financial loss. However, there are many small things which can be kept in mind to avoid unnecessary difficulties.
Keep these things in mind before signing the cheque
Always write the date correctly on the cheque
While issuing the cheque, the date should be correct. The date should match the day on which you are issuing it. This is most important. It saves you from many confusions. This tells you when the cheque can be encashed. By entering the wrong date, the cheque can also be rejected by the bank. Apart from this, it is also very important to maintain accurate financial records.
Use permanent ink in the cheque
Permanent ink should be used to avoid tampering with the cheque. So that it cannot be changed later by cutting and editing. This can also save you from fraud.
Keep sufficient balance in the account
If the cheque bounces, you may have to go to jail along with a fine. In the language of the court, bouncing of a cheque is considered a legal offence. There is also a provision of punishment under the Negotiable Instruments Act, 1881. When a bank rejects a cheque for any reason and payment is not made, it is called cheque bouncing. The reason for this is mostly not having sufficient account balance. It is very important to have sufficient money in your account while issuing a cheque.
Always write the name correctly on the cheque
Write the name of the person to whom you are issuing a pay cheque in clear words. A correctly written name will ensure that the cheque reaches the right place. Mistakes in writing the name can cause delay in clearing the cheque. It can also be rejected by the bank.
Pay attention to the signature while issuing a cheque
Whenever you sign a bank cheque, remember that you have to sign in the same way as is already recorded in the records of the concerned bank branch. Many people keep different signatures for different banks. If you have also done this, then be careful while signing the bank cheque.
Do not keep too much space between the words and numbers in the cheque
Whenever you make payment to someone through a cheque, do not keep too much space between the words and numbers regarding the name and amount. Too much space can increase the chances of tampering with the name and amount. Apart from this, check that the amount filled in words should be the same in numbers as well. The bank will accept the cheque only when the amount matches in both ways, otherwise the cheque will be rejected.
Do not sign the cheque and give it to anyone
Never issue a blank cheque to anyone, no matter how trustworthy the person is. The reason for this is that any amount can be filled in it. If the relationship gets spoiled or the other person changes his mind, then he can empty your entire bank account.
Keep the cheque details with you
Whenever you make payment to someone through a bank cheque, make sure to note down the details of that cheque such as cheque number, account name, amount and date. This information can be useful when you need to cancel the cheque. Apart from this, you also get to know whether any cheque has been misplaced or whether someone has taken a cheque from the cheque book without your knowledge.
