What is canceled cheque use: Although RTGS, NEFT, net banking, mobile banking, debit and credit cards are available for transferring money, ‘canceled cheques’ are still used in large financial transactions. Let us know why they are taken.
Net with RTGS, NEFT for money transferBanking, Mobile BankingAlthough debit and credit cards have become available, canceled cheques are still used in large financial transactions.
Let us know why they are taken.
One of the important reasons for taking a canceled cheque is to ensure the bank account of the person concerned. Each cheque bears the account holder’s name, bank branch name and address, account number and MICR number. This ensures that the concerned has an account with the concerned bank.
What is a canceled cheque?
When two parallel lines are drawn on the entire cheque and the word ‘Canceled’ is written in those lines, then that Cheque is considered as ‘Canceled Cheque’. Just two parallel lines drawn on the cheque; But if it does not say ‘Canceled’, then the cheque is not ‘Canceled’. More importantly, it requires the use of black or blue ink. Such cheque is not accepted if ink of other color is used. The canceled cheque does not need to be signed by the account holder. Money cannot be withdrawn from the account by this cheque.
What is a ‘canceled cheque’ for?
Banks require a ‘canceled cheque’ when taking home loans, auto loans and personal loans. Similarly, when buying an insurance policy, when investing in mutual funds, the companies concerned ask for such cheques. The information given in the form is that the bank account belongs to the concerned account holder. Canceled cheques are also required to withdraw PF money offline. Canceled cheques are also required when registering for the electronic clearance service.
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