Filling a cheque isn’t a big deal. Is it? Probably, It doesn’t seem to be. But there are some loopholes that can get you into many troubles. A small mistake or carelessness can make you burn your hard-earned money. So, write a cheque without leaving any kind of scope to a clever person. Before knowing how to fill a cheque in India, let’s get to the details of the structure of a cheque.
Structure of a Cheque.
How to write a Cheque in the safest way.
1) Date of a Cheque
The date on a cheque reflects the day on which it becomes a legal tender. You must write a date in DD/MM/YYYY format. The date on cheque is mostly the day on which you issue a cheque, but sometimes if required you can write the future date (known as Post Dated Cheque). Example, If you want to make a payment on a certain date, then you can create Post Dated Cheques. Cheques taken as security can be left un-dated.
Cheque Bouncing due to Dates
- If Date is disfigured or has some mistake, or is not readable or scribbled, will lead to your cheque bouncing.
- The validity of Cheque is 3 Months only, it may get dishonored if submitted after the last date.
- Cheques deposited before the date written (Post Dated) on it will be returned back or dishonored.
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2) Name of Person/ Payee’s Name
A name of a person can be Individual’s Name/ Company’s Name/ Firm’s Name (Partners). It must be of the person whom you suppose to pay money. Name of a person on a cheque is known as Payee’s Name.
Precautions before writing Payee’s Name.
- Do not leave any space before or in-between the Payee’s Name.
- Never leave any space after Payee’s Name. Stike out a line in order to protect the cheque from getting tempered.
3) Add words “A/c Payee” in crossed lines.
Adding the words “A/c Payee” in crossed lines mean you give instruction to the drawing bank to add money directly into the A/c of Payee and not cash in hand. This ensures you are giving payment to the right person.
Example, there might be more than one Ram Kapoor so, if words A/c payee would not be written other Ram Kapoor can steal it and withdraw money.
4) Amount in Rupees
Amount in rupees refers to the money you actually want to pay to someone. Always follow the below instructions.
Add words “ONLY” after at the end of writing the Amount in Words in the ‘RUPEES’ column.
Adding words ONLY ensures that the other person can not overwrite and amount can’t be altered.
Add a /- in the ‘Rupees in Number” column. Do NOT leave Spaces Anywhere:
Adding /- at the end of the amount of rupees in number ensures other can’t alter the amount.
Points to Remeber before filling up a cheque.
- Never ever leave a blank Cheque signed even if you trust a person because once misplaced it would be a tragedy.
- Sign properly and same as per your specimen’s signature with the bank.
- Destroy all the cancelled cheques unless used for specific purposes such as for GST Registration etc.
- Write the purpose of the cheques on the backside of it.
- Keep the track of your Cheques.
- Maintain the A/c balance on due dates of the cheques to avoid Cheque Bouncing.