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 Cheque
While 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.
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Does cancelled cheque require signature?
Ganesh
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May 13, 2022
2022-05-13T15:25:38+00:00 2023-08-17T12:10:53+00:00Comment
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