“Cheque is an art, not chance, always greater than the cause that they represent.”
It is vital for us to know the depth of the sacredness of a Cheque. Let me first shower upon you the importance of a Cheque. A cheque is a paper which acts as a document for a bank. Orders are passed out when this paper is stated in any transaction agencies. Large amount of money and payments are made with Cheques.
How to write a Check with cents
How to write a Check with zero cents (No Cents)
The question now which crops up in our mind is,”How does this cheque system work?” If a person writes the cheque he/she is called a drawer and has a transaction banking account through which the money could be transacted. Paying through Cheque acts as a milestone of development for an effective payment and settlement system. All the centres set up in India for transactions are managed by Reserve Bank of India.
How to write a Personal check
Now when we all know what a cheque is and how important is is for all of us to write a cheque in an efficient manner, it is equally surprising for us to see that many of people are unaware of the penmanship of writing a cheque. Many people for example, knows how to write a cheque but to pen down in an error- free manner is only achieved by knowing the rules of writing a Cheque.
How to write out a Check
How to write a void check
Before we head-off for writing the cheque , that one discipline that we should follow up is “Patience”. YES, to write a cheque ‘Patience’ is required as well as ‘focus’. If we act frivolously while writing a Cheque then we end up with making mistakes which should rather be avoided.
How to write a check for rent
While writing a cheque one should always use a dark ink, preferably Black. Black is an official ink and has been plying since ages. Therefore, while writing a cheque the colour should be Bold, powerful, authoritative and elegant. An ink should be true and reliable. So choose your ink carefully.
First, when you write a cheque you have to check wheather the words ,”OR BEARER” is written. Cancel the word “OR BEARER” and write “A/C Payee” to the top left corner of the cheque. If you fail to do this, anyone holding the cheque
Will claim the money as it will be treated as a. ”Bearer cheque”.
Secondly, while writing a cheque be careful of not leaving gaps in between. Do not leave a space between PAY and the name. As anyone could fill in another name and claim all the money to themselves. After writing the name draw lines so that no other person could fill in the gaps.
How to write a check to yourself (Myself)
Thirdly, once you have written on the cheque avoid overwriting as this is not accepted by anyone and causes confusion. So the handwriting should be good, simple and easily understandable.
Fourthly, you have to write the amount in words . So, after writing the amount always be clear that you have written the word, ’ONLY’ after it, so that no fraudster could easily alter it.
While writing in numbers always end with a slash and put a hyphen like this ’/-‘. This done to avoid any misleading done by anyone.
Fifth, it is notable for us to know that we should sign above the authorized signatory text. The space above is blank and is for us to sign there. One signing on the MICR Brand is WRONG and is not admissible. (MICR) stands for Magnetic Ink Character Recognition.It is mainly used by Banking Industry to ease the clearance of cheques.
Sixth, on the right hand side top is the space given for the Date. If a wrong date is written, anyone could encash the cheque according to their will. Without a date the cheque will be discredited. So putting the right date is important and crucial for the transaction to take place.
Seventh, do not write inessential details on the cheque as it could be insupportable by the transactors.
The eight point is very crucial because after completing the cheque it is essential to keep an evidence for yourself. Note the name of the Payee and the date of the issue. Click a picture on your smartphone or fill the information at the back of the cheque book . It avoids suspicious activity and fraud cases.
Ninth, if possible sign twice on the cheque to avoid getting the cheque bounced or to avoid mistake in your signature.
Tenth, do not fold or staple the cheque. It is not acceptable.
It is important to keep the record of a cheque as if you happen to be cancelling the payment, but do not remember the details, having recorded this information turns out to be very handy at times and helps helps to do work freely and fast.
Lastly, I always advance you to the next level by saying that,”Cheques are always realized so be prudent at all levels for the changes”
Take note that when you write the date you have to keep this in mind that a cheque is only valid for 3 months. So for eg, if you put the date 11/11/2017 then it will be valid for 11/12/2017 and 11/01/2018. After 11/01/2018 the cheque automatically ceases to be valid and if you want to submit that particular cheque you will fail to do so after the expiration of the date.keep this in mind that when you write the numerology of the amount then there should not be any gap between the line and the number of the box. Stick close to the line as it avoids any trickery to take place.
Now, if you are in a hurry and made some small mistake while filling up the cheque , then cut that small mistake with your ink and make a circle. For example, you wrote “Rupeas’ instead of “Rupees” then what you have to do is circle the “a” with your ink and put your signature above it.
Draw two parallel lines in the top left hand corner and write the words account payee(A/C Payee) your cheque can only be paid in the Bank account and not encashed directly.
While you sign in the given space of authorized signatory make sure your signature matches the sample signature you had submitted to the bank when you had opened your account.
HOW TO FILL SELF-CHEQUE?
Write the date and on the Pay space write “Self”. You donot have to put the sign of the A/C Payee at the top left hand side corner. Put the amount in words and numbers and then approve it with your signature.This is how you can Self – withdraw the money from the bank.
If you want to give a cheque to someone then write the name of the person at the Pay space for eg, ABC Karl Dex and then at the bottom of the cheque near the signature write ”card holder”. The money will be transacted to his account only.
If you have been given a cheque and you want this cheque’s money into your account then at the back of the cheque write the Account.no, Your no., Mobile no. and Pan card no. After this information drop it into the drop box and then you will be given a form where you have to give all the declaration and account number. Then the total amount of money which has been written on the cheque for eg, RS.2,ooo will be transacted into your account.
It is very important to have a powerful signature so that no one else can rewrite the signature.Firstly avoid scribbed signature as these ones can be copied. Besides, if it is not clear , one will not be able to identify easily that it is yours. Secondly, include your first and last name in the signature and stylize it but make sure you do this clearly and it’s readable.
Donot have any alteration made while writing the date.
The safety measures for writing a cheque are:-
- Please use permanent ink.
- Use the cheque leaf supplied by the bank.
- Never sign blank cheques. Put the date, the name and amount before signing the cheque.
- Draw a line to avoid unused spaces.
- Cross-check whenever possible.
- Do not sign in multiple places.
- When cancelling a cheque mutilate the MICR and write “CANCEL” across its space.
- Ensure to keep your chequebook under Lock and Key.
- Have your signature verified to avoid forgery.
In general, one should write a check to pay for goods and services for which payment is due immediately.
Cheque is a promise letter for the lender and the giver bringing up the bank as the mediator who safely lends the money from one hand to the other hand.
We should all know what are the parties to the cheque? This helps us to have a broader outlook about Cheques.
Parties to the cheque are:-
- Drawer- The person who will signature on the cheque and he will order for all payment.
- Drawee – It is always through bank on which cheque is drawn and is ordered to pay the amount of cheque.
- Payee – The person to whom the cheque is payable in many cases, drawer and payee can be the same person.
Now, we should also know how many types of cheques are there and how to write them!
What is an open cheque?
Open is an uncrossed cheque which is payable at counter of the bank. It can be Bearer Cheque or Order Cheque.
What is a Bearer Cheque?
When a cheque is payable to a person whose name appears on the cheque or to the bearer i.e.to the person who presents the cheque to the bank for encashment is called bearer cheque. It can be transferred by mere delivery and do not need endorsement.
What is an order cheque?
When a cheque is payable to the person named in the cheque or to his order is called Order Cheque. When the word Bearer is cancelled, the cheque becomes the order cheque. It can be transferred only by endorsement and delivery.
What is Crossed cheque?
It is the cheque on which two parallel transverse lines are drawn across the top left, with or without word.
- Not Negotiable
- A/c Payee
It cannot be enchashed at the counter of the bank, can only be credited to the account of the payee.
What is Sate Cheque?
The validity of Cheque is for three months. If the cheque is not presented within the three months, it gets expired and becomes the stale cheque or out-dated cheque.
Kindly note that the earlier validity of the cheque was for six months, but it has been reduced to three months, with effect from April 1 , 2012.
What is crossing of the cheque?
The crossing of Cheque shows to draw two lines which are parallel on the left-hand cheque corner. It directs the bank to deposit the money directly into the account and not to pay cash at the bank counter.
THE MODES OF CROSSING:-
General Crossing:-when a cheque bears two lines which are parallelto each other at the left hand of its top corner of the check. Words such as ‘and company’ any other abbreviation (such as &co.) should be written between the two parallel lines, either with or without words ’not negotiable’, is called General Crossing.
Payment can be made only through bank amount, and that should not be made at counter of paying bank.
Special Crossing:- When a cheque bears the name of the bank in between that parallel lines which has been drown on the check, with or without the words “not negotiable” is called special Crossing.
The bank will pay to the banker which name has been written in between the two crossing lines.
Double Crossing:- When a cheque bears two special type of crossing, which is known as Double Crossing. As person of the first collecting banker, in the second Act. It is done when the banker in that favour that cheque has been crossed does not have the branch where the cheque is paid.
How to Write a Cheque
Step 1: Write the date at the upper corner of the check
Step 2: Write the name of the person which you need to pay
Step3: Write the amount in the amount section.
Step 4: Write the amount in the words (Below the name line as shown in the image)
Step 5: Do the signature at the bottom of the check.
For more details visit this site https://www.wikihow.com/Write-a-Check
Therefore, as I conclude I say to everyone:-‘If the cheque is done with haste and uncertainty, You gain poor peace and victory undone.”So, to own a cheque and to write in an effective way is victory in itself.