How to Write A Cheque Safely?

How to Write A Cheque Safely?

One of the most common ways to pay money is through a cheque. Writing a cheque is admittedly simple, however, you need to watch out. A mistake while writing a cheque, can prove very costly and cost you a lot of money.

  • Use ‘A/C Payee’ Rather Than ‘OR BEARER’-

Cutting the words ‘Or Bearer’ and writing ‘A/C Payee’ to the top left corner of the cheque will ensure that no one apart from the individual in whose favor this case you are doing not omit the words ‘Or Bearer’, it may be acknowledged as a Bearer cheque and someone possessing the cheque can claim the money. Always confirm that you just don't' leave spaces between the words PAY and the Name of the Receiver.

  • Avoid Spaces Also:

Avoid leaving spaces between the name and surname. This practice is important since it doesn’t provide anyone an opportunity to fill in alphabets before or after the name to claim the money.

  • Don’t Sign On the MICR Band:

Is the bank’s related numeric at the bottom of the cheque. For everyone who is accessing the cheque mode of payment to manage transactions, it's quite crucial to know that signing in the MICR Band is considered as a WRONG practice. This is one of the prime reasons that can get your cheque defiled. Whenever you are attempting to fill a cheque, be careful to sign on the space provided right above the Name of the Account Holder or Authorized Signatory text. Writing a cheque without adding the date can be a dangerous practice. This permits anyone to put any date and pull out cash using the cheque at their will.

  • Fill the Correct Date:

Further, a cheque with a post- or pre-date is another issue that can lead to dishonoring of the cheque. Moreover, a wrongly written date, for example, the wrong year or a month would also lead you to a problem.

  • Don’t Overwrite:

When you are writing a cheque, ensure there's no kind of overwriting. It means, no scribbling or cancellation of text would be entertained by the banks. The person has to rewrite on a new cheque if there is any overwriting mistake with the earlier cheque.

  • Keep records of your Cheque:

Basically points to the careful preservation or proper maintenance of all your cheque records. One should manage a record of the cheque details comprising the cheque number, issuer name, and date for future safety reference. Do not forget to mention the payment amount with every cheque that is issued.

Tips To Keep Your Cheque Book Safe:

  • Record all details of cheques issued.

  • Keep Cheque book at a secure place.

  • Do not leave your Cheque book unattended.

  • Whenever you receive your Cheque book, please count the number of cheque leaves in it.

  • If there is a discrepancy, bring it to the notice of the Bank immediately.

Tips To Fill A Cheque Leaf Correctly:

  • Do not sign blank cheques.

  • Always fill in the date, the name of the receiver and the amount before signing the cheque.

  • Remember to cross your cheque whenever applicable and prevent it from being misused.

  • Always draw a line through any unused space. Never sign in multiple places unless authenticating a change.

  • Avoid using cheques with changes on them.

  • Issue a new cheque if possible.

  • When you cancel a cheque, mutilate the MICR band and write “CANCEL” across the face of the cheque not write/sign/mark/pin/staple/paste/fold on the MICR band.

  • Keeping a carbon underneath while writing cheque reduces the chance for committing fraud by altering the payee name and/or amount of cheque.

Tips While Accepting A Cheque:

  • Make sure the cheque is signed.

  • The cheque must not be post-dated or have any dirty marks on it.

  • Handwriting must be consistent in all parts of the cheque.

  • Make sure the same pen is used throughout the cheque and the ink is not different.

  • Make sure there are no spelling mistakes in the cheque.

  • Make sure there is no tampering on the MICR. Be Wise, Get Rich.

From Team,

Sunita Finlease

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