Hi,
I was asked to submit a cancel cheque when I was buying an insurance policy. I did not know what a cancelled cheque is, so I asked my father about it. He explained the concept of a cancelled cheque in very simple words. Let me pass on the same info to you.
What is a Cancelled Cheque: Cancelled Cheque Signature Required or NotA cancelled cheque is a cheque that has been crossed with 2 lines and the word “cancelled” is written across. It acts as proof that the person has an account in a particular bank. Here’s how you can cancel a cheque:
All you have to do to cancel a cheque is draw two parallel lines over it and write “cancelled” in between the lines. You don’t have to sign a cancelled cheque because this can help any fraudster replicate the same. If someone asks you to sign the cancelled cheque, then you should always ask them for a declaration or statement stating the same.
A cancelled cheque can provide several details about your account like your name, account number, bank branch, bank name, and MICR code. Even though the cases of fraud using a cancelled cheque aren’t common, please ensure that the institution or individual to which you hand over your cancelled cheque is trustworthy.
I hope now you got the answer to your query on “does cancelled cheque require signature.”
Pay Rent via NoBroker Using Credit Card and Earn Reward Points/Air Miles or Get Cashback! Some Cases Where You Need to Submit a Cancelled ChequeWhile opening a current account or savings account in the bank.
For KYC purposes.
To withdraw EPF funds.
When opening a Demat account.
When purchasing insurance policies like a moneyback plan or endowment plan.
A financial lending organization may ask you to submit a cancelled cheque to process the loan request.
Now you know what to say if someone asks you this question: “Do we need to sign on cancelled cheque?”
Pay Your Utility Bills like Water and Electricity Bills Online with the Help of NoBroker’s Bill Payment Services!
Read more:
What happens if a crossed cheque is presented for payment?
How to find cheque number?
This is all on your query related to “cancelled cheque signature required”
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Does cancelled cheque require signature?
Ganesh
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3 Year
2022-05-13T15:25:38+00:00 2023-08-17T12:10:53+00:00Comment
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