In today’s time, all people save their money and save it in the bank account and withdraw money from the bank via various options like bank slip or use an ATM card if required. Now if we need some small amount of money, then we can easily go to the bank and withdraw money from ATM card and give it to anyone. But if the money is in thousands or in lakhs, then we need a check book. Apart from this, some people ask for a cancelled check from us, and then we do not know what a cancelled check is and how to make it?
So in this article we will guide you about
- What is a Cancelled Cheque?
- How to make Cancelled Cheque?
- You should also know why Cancelled Cheque required and what are its benefits?
- Cancelled Cheque meaning
Nowadays we keep hearing about Cheque in everyday life. Cheques are heavily used in business transactions. Almost everyone knows about the Cheque. But with this comes a word of Cancelled Cheque. Whose name we get a little confused. Often we do not understand what the meaning of cancelled cheque is?
Before knowing about the canceled Cheque, we should have to know about cheque and how to get it. Lets we talk about the Cheque, we can say in simple terms that it is a paper and its value like cash money. But the value of the Cheque can be much higher than the cash money. Through a Cheque, a bank account holder can pay to the next person by not giving direct cash from his account. In short, a Cheque is a payment without cash.
What is Cancelled Cheque?
Now let us talk about what is the Canceled Cheque and how it is used. So we can tell you that Cancel Cheque is not a unit Cheque and the bank not issues separately. It is rather a simple Cheque which we make a cross with a pen and write Cancelled and that Cheque becomes Canceled Cheque. In simple words, a Cancelled Cheque is a cheque which have crossed with a pen and written canceled. Due to which it becomes canceled. Now with this Cancelled Cheque, person or companies can get account information only and nobody can withdraw money from your bank account.
Why Cancelled Cheque is needed?
Now you must also be thinking that when we have crossed the Cheque with a pen and canceled it, then what can we use it for now, we have canceled it. So let us tell you that the Cheque is canceled so that no one can misuse it. However, after canceling the Cheque, someone can use Canceled Cheque, by checking the Cheque number, account number and MICR code.
You may also be confused that why Cancelled cheque is required. So, let we tell you that you may need Cancelled cheque at the following places.
- While updating KYC, you may need a Cancel Cheque
- Whenever a person wants to invest or trade in stocks, he needs a demat account. To open a demat account; Cancel Cheque will also be required along with other documents.
- In such a place where you would like to receive payment, sometime Cancel Cheque can be a necessary requirement.
- Whenever you take an insurance policy, it may be needed there too.
- You also need Cancel Check to make EMI payments for many types of loans.
- To open a new bank account – Sometimes if you want to open a new bank account in another bank, then the bankers can ask you to cancel cheque as a proof
- For home loan: If you want to take a home loan, then you must have to give a cancel cheque for bank loan, which proves that you have a bank account in a particular bank.
How to make Cancelled Cheque?
Step 1: Draw two slanted lines in the Cheque.
To make a Cancelled Cheque, you have to take a pen, and the pen should be such that it is not erased by any eraser. If possible, use a gel pen. So here you have to draw two slanted lines as you can see in the screen shot below, in the same way you also have to draw the line on your Cheque.
Step 2: Now write CANCELLED on Cheque.
As soon as you draw two slanting lines, after this, now you have to write CANCELLED in big words between these two lines, so that your Cheque will become a cancel Cheque. After that, you can give this Cheque to whomever you have to give.
Pay attention, if someone asks you to sign in Cheque, do not do it. There is no need for a sign in any type of Cancelled Cheque. Just by writing the cancelled in the Cheque and you can give them to whom to give
So in this way, you can make Cancelled Cheque very easily.