Do’s and Don’ts when writing a cheque

Look at Rekha and Radha’s conversation to understand what should and should not be done while writing a cheque.

Some more things to keep in mind while writing a cheque:

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    Always keep your cheque book safe.

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    Make sure the number of zeros entered in the number box is correct.

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    Always add a standing line and sleeping line “/-” after writing the amount in numbers. For example, write “5,000/-” instead of “5,000”, so that later on the cheque cannot be changed into “50,000” by adding another zero.

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    Always make sure the amount written in words and amount written in numbers is the same amount.

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    A cheque is valid only for 90 days. So, deposit it in the bank within 90 days of the date written on it.

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    Make sure to only place your signature on the bottom right hand corner. Signing anywhere else on the cheque will not be accepted by the bank.

Points to remember:

Points to remember:

Here are some key takeaways from this section that you should remember.

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    Cheque is a document which orders a bank to pay a specific amount of money from one a/c to another.

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    Banks give us cheque books with many cheques when we create a bank account.

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    You can use cheques to make large payments and avoid cash and online transactions.

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    Date, Name of payee, Rupees, Rs. and Signature – these are the five sections in a cheque.

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    Only the person whose name is written on the cheque will be able to use it. Don’t leave gaps or empty space between the letters while writing the name.

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    Banks don’t accept cheques in which there are errors and corrections. In case there are errors, write a new cheque.

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    Always cross a cheque, because then, only the person whose name is written on the cheque can use it and not anyone who finds the cheques or steals it.

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    Always add a standing line and sleeping line “/-” after writing the amount in numbers.

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    A cheque is valid only for 90 days since it was written.

Go ahead and learn more about banks, cheques, deposits, and much more.

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