Bank Cheque Tips: While writing a cheque, make sure to check these 10 things, if you miss them, the bank will refuse payment.

 

Bank Cheque Tips: Cheques are still an important part of the banking system. Be it a business transaction or a 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 becomes 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 checks 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. The cheque can also be cancelled due to spelling mistakes in the name. Only "Bearer" or "Self" can be written, but clarity is important.

There should be no difference between the amount in numbers and words
The amount is written twice in the cheque – once in numbers (₹25000) and a second time in words (Rupees Twenty-Five Thousand Only). There should be no difference between the two.

Sign correctly
Your signature should match your bank records. In case of a mismatch, the bank rejects the cheque. Overwriting or an error in the signature can also cause the cheque to bounce.

There should be a balance in the account.

If the account does not have the amount mentioned in the cheque, then it becomes the biggest reason for the cheque to bounce. This not only causes financial loss but can also lead to legal action under Section 138 of the Negotiable Instruments Act.

Do not overwrite
The cheque is a sensitive document. Cutting, adding, or repeatedly writing 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 MICR and IFSC code of the cheque
The bottom part of the cheque has a micro-printed lining which contains bank details, cheque number, IFSC code, etc. If this part is dirty or torn, the cheque will not be read and will be 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 to ignore.

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