Mattu & Mittu


Bank Cheques – Are you writing them correctly?

  • May 10, 2017
  • rootroot

With all the emphasis on digital India and the ease of online transactions, our Cheque books lay dusty as we don’t use them as much in regular life. The digital makeover that banking has received does not mean that we should forget the basics. Even today, a Cheque has an important role to play in our transactions. With that in mind, given below are the most frequent queries that you might face when using a Cheque:

What is a Cheque?

A Cheque is a written order, made by a customer of a bank to a drawee bank to make a single payment to the payee mentioned on it.

A Cheque is a paper-based mode of payment in which the drawer writes a Cheque (issued by his/her bank) to pay someone. The individual being paid, or the payee, can have his/her account in either the same bank, or a different bank altogether.

Drawer – The individual writing the Cheque to make a payment

Payee – The individual receiving the money

The details that are present on a written Cheque are:

  • Bank address

  • IFSC code

  • Date

  • Payee name

  • Amount

  • Cheque number

  • MICR code

Make sure you always have the correct date mentioned on the Cheque so as to avoid any misuse or fraud attempts. A Cheque is only valid for six months from the date mentioned on it.

How to write a Cheque correctly

Here are a few steps to help you write a Cheque properly:

  • Step 1: ‘Cross’ the Cheque by drawing two parallel lines at the top left corner of the Cheque. This essentially means ‘A/C Payee’.

However, do note that some banks now provide Cheques with these two parallel lines as a part of the default nomenclature of the Cheque.

  • Step 2: Write the date on the top right side, and the name of the individual you are paying to.

  • Step 3: Write the amount in words. Follow it by ‘only’ to prevent fraud. Fill in the amount in digits and end with the ‘/-’ symbol.

  • Step 4: Sign in the empty space at the bottom of the leaf.

Avoid overwriting, as it may lead to Cheque cancellation.

All you need to know

Here are some of the most common terms used in relation to Cheques:

Cancelled Cheque

A cancelled Cheque has the label ‘Cancelled’ written across it. This is used as a KYC document to confirm someone’s bank account details, like the name, account number, bank, etc.


Banks have a monthly limit for this type of Cheque, and it may vary from one bank to the other. A payable-at-par Cheque is one that can be en-cashed at any bank branch across the country.

Dishonor of Cheque

This is when a bank refuses to pay the payee the amount mentioned on a Cheque. This condition could arise due to a number of reasons like a difference in the amounts mentioned in digits and words, an out dated Cheque, lack of funds, etc. A dishonored Cheque may make you liable to pay bounced Cheque charges.

Bounced Cheque

Your Cheque can bounce because of various reasons like lack of funds, mismatch of signature, etc. If this happens, both the defaulter and the payee are charged penalties by their respective banks.

Knowing the basics associated with a Cheque is essential in more ways than one; from writing the Cheque correctly to swift processing at the bank’s end, it makes your Cheque transactions quick and efficient.

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