In today's time, everyone wants to keep their money safe, for which they keep their money in the bank, because the bank allows us to keep the money and can withdraw it whenever we want, for which we bank our money keep in. When we need some money, we withdraw money from the bank or ATM and fulfill our needs. But when we need more money, like in thousands or lakhs, we use the check to withdraw money in a limit or pay someone. But sometimes a bank or company asks us for a cancel cheque, if we do not know about the cancel cheque then how will we give the cancel cheque? So don't worry about it, so today we will talk about what is a cancel cheque and how does it work you may have seen many people giving cancel cheque, but if you do not know what is a cancel cheque and when it works, then today's article is on this subject.
So let's talk about what is cancelled cheque? and when it works? and how to make a cancel cheque?
Cancel cheque is usefull in many places such as online money or offline money transaction, and at some cases you have to give cancel cheque like if you have to take payment from a company, then company asks for cancel cheque for account verification, or if you open an account with another bank even the you need a cancel cheque. So let's know what is a cancel cheque? and how it works?
What Is Cancel Cheque :-
Cancel cheque is a normal cheque but in it, two diagonal lines are drawn and in the middle of it, the CANCELLED is written in capital letters. What we call cancel cheque. Nothing else is written in this cheque, only two diagonal lines are drawn and cancel is written in the middle. It is written so that no user can misuse that cheque and whether it is a bank, SBI (STATE BANK OF INDIA) or PNB (PUNJAB NATIONAL BANK), any bank's normal check can be converted into a cancel cheque.
So here the user you are giving a cheque can see you account information like bank account number, IFSC code, Name etc. So from here a question arises when cancel cheque is useful.
What Is Importance Of Cancel Cheque :-
Canceled cheque are very useful, some of them are.
- To Open a Bank Account :- If you open an account in any other bank, then that bank asks you for a canceled cheque for proof that you have an account with that bank.
- To Take a Loan From a Bank :- If you take a loan from a bank, the bank requests a canceled cheque at the time of giving the loan. For example, if you take an education loan for your child's education, at that time you have to give a cancelled cheque in the bank, which is proof that your account is in that bank.
- To Payment Someone :- If you have to pay from a company or from any of your clients, then in this also you have to give a cancel cheque to the company or to one of your clients. For account verification, like account number, IFSC code and Name etc.
- For Investment :- If you invest somewhere in the market, such as if you invest in a MUTUAL FUNDS or invest in the STOCK MARKET, you also need a cancel cheque to invest, which you have to give to the investment company.
- For Insurance Policy :- If you get the health insurance done for your health, then to get the insurance done, you also have to give a cancel cheque, which gives your bank information.
How To Make Cancelled Cheque :-
Step 1. Draw Two Slanted Lines In Cheque :-
To make a normal cheque a cancelled cheque, you must first draw two slanted line in between the cheque. As seen in the image draw lines just like that.
Step 2. Now Write The CANCELLED In Cheque :-
After drawing lines in the cheque, the letter CANCELLED has to be written in the middle, apart from this you don't have to write anything else in the cheque. Exactly the way it looks in the image.
So take your consled cheque is ready, now you can give it to whomever you want to give it to.
But it is important to note that if someone asks you to sign a cheque, do not sign the cheque, because no cancelled cheque is signed.
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