To give a canceled cheque means that you have an account with the bank in which you have given the cheque. It bears the name of the account holder, branch name and address, account number and MICR number. Through these the presence of your account in the bank is ensured.
The use of cheque is still very important in the era of online transactions. Cheque are often asked for insurance, mutual funds and many other things. But very few people know about how a canceled cheque is valid on writing. Also, why is it demanded? Bankers say that cheques are also used to prove that you have an account with a bank. For this, the transaction of cheque is not done in the normal way. The cheque is used in a special way as a canceled cheque. Let us know the answers to all the questions related to canceled cheque…
Question: Why is canceled cheque demanded nowadays?
Answer: To give a canceled cheque means that you have an account with the bank where you have given the cheque. It bears the name of the account holder, branch name and address, account number and MICR number. Through these the presence of your account in the bank is ensured.
Question: Which cheque is considered as a canceled cheque?
Answer: Experts say that a cheque is called a canceled cheque when two parallel lines are drawn on the cheque and canceled is written between them.
Question: Can money be withdrawn from the account through this cheque?
Answer: Money cannot be withdrawn from the account through this cheque. To cancel a cheque, just draw two parallel lines on it and write “Cancelled” in between. There is no need to sign a canceled cheque.
Question: What is the correct way to cancel the cheque?
Answer: Bankers tell that by drawing two parallel lines, it does not get canceled. It is necessary to write “Cancelled” between both the lines. Apart from this, only black or blue ink would have to be used to cancel the cheque. Ink of any other color is not acceptable.
Question: What are the items for which a canceled cheque is used?
Answer: When you take a home loan, car loan, personal loan, etc., the bank asks you for a canceled cheque.
1. While buying an insurance policy, the insurance company asks for your canceled cheque.
2. While withdrawing PF money through offline method, your canceled cheque is asked.
3. Through this it is certified that the bank account filled in the form is yours.
4. At the time of investing in mutual funds, investment companies demand a canceled cheque.
5. A canceled cheque is also required while registering for the Electronic Clearance Service.
