How to Write a Cheque in India: The most common method of payment is by cheque. But is writing a check really that easy? – With the change of era, there has been a great advancement in technology, especially in the banking sector, for which people have started using digital methods of payment.
Here, we will share with you a step-by-step guide on how to write a cheque in India. It will include information on how to fill in the various fields of a check and how to avoid mistakes while writing a check. I hope, by the end of this article, you will have a good idea of how to write a cheque.
What is Cheque?
A cheque is a written, unconditional order that enable peoples to access the fund in their bank accounts. One can either use it to withdraw funds or transfer funds to another account by check transfer.
Understanding Various Parts of the Cheque
In order to write a cheque correctly, you need to understand the various fields in the cheque. Here are some of the important fields of the cheque below:-
- IFSC:- It stands for “Indian Financial System Code”, a unique 11-digit code made up of a combination of letters and numbers used to identify individual bank branches in India.
- Date Box:- You have filled this area with the current day, month, and year.
- Payee Information:- In this field you have write the payee’s name correctly.
- Rupees:- In this area you have to write the amount in words.
- Amount:- In this field you have write the amount in number.
- Account Number:- This field you must type the unique bank account number correctly to process a payment.
- Signature:- The drawer must sign correctly in this field to proceed payment. However, most banks these days print the drawer’s name on the cheque, but still signature is required.
- Cheque Number:- Every cheque has a unique number and a MICR code that is printed on the bottom right corner of the cheque and helps to identify and track specific cheque transactions.
How to Write a Cheque in India? (The Right Way)
We all may think that what is the big deal in writing a cheque? We write it many times to make payments. But there are many times when people make most careless mistakes while writing a cheque. So, let’s see how to write a cheque in India correctly.
01. Write Current Date
A check must be properly dated. An undated check allow anyone to put any date and be able to encash it at will. This can be a big problem if there is an insufficient funds and you wish to post date the check. Furthermore, a wrongly written date may be cancelled the cheque if the date is three months late.
02. Write Payee’s Name
Write the name of the person or organization who will receive the cheque on the “Pay” line. Make sure to write the full name correctly to avoid any confusion. If you are paying an individual, enter their full name and if you are paying an organization, use the full name as mentioned on their bank account.
03. Write the Amount in Words & Numbers
Write the amount in words below the payee line. For example, if the amount is Rs.2000, write “Two Thousand Rupees Only”.On the right hand side of the cheque, write the amount in number.
04. Account Number
You need to make sure your check has an account number and the bank address on the check. Nowadays it is mandatory that your name should be on the page of every check.
05. Put Your Signature
Sign the cheque at the bottom right hand corner using your regular signature. Note that the signature should match the signature given to the bank while opening the bank account.
What Not to Do When Writing Cheques
There are some mistakes you should avoid when writing checks to ensure that the check is valid, secure and processed smoothly. Here it is:
- Do not overwrite in a cheque.
- Do not use a pencil or any erasable ink when you write a cheque.
- You need to ensure that the amount words are legible, accurate, and match the figures to avoid any discrepancies.
- Always use ‘ONLY’ at the end when you writing the amount in words.
How Do I Stop Payment of the Check?
To stop payment of a check, you have an option. This can be done by submitting a letter to the bank with essential documents including check number, amount, and the payee’s name. It’s important to note that a stop payment request must be made before the check is presented for processing and that your bank account should contain sufficient funds to cover the check amount.