Cheque users alert: It is always advised to be careful while making payment through cheque, so that no fraud occurs. Let us know what things should be kept in mind while issuing or signing a cheque.
Nowadays most of the people in India have started using digital payment. But even today many people use cheques for big transactions. Many times, while signing a cheque, we ignore some important things and later we end up incurring huge losses. Some precautions should be taken while signing a cheque or making a transaction through a cheque so that no fraud or cheque bounces. Because if a cheque bounces, the image of the account holder gets tarnished and cancellation of the cheque comes under the criminal category.
1. Don’t make mistakes in signing
Whenever you sign a bank cheque, keep in mind that the signature should be the same as you did while opening the account. If the signature does not match the cheque will be bounced.
2. Be sure to cheque your account balance
While giving a cheque, definitely cheque the bank account balance. The cheque amount exceeding the balance gets bounced and penalty is imposed on it. Therefore, it is very important to have sufficient balance in your account while issuing the cheque.
3. Do not keep space between words
Whenever you make cheque payment, keep in mind that while writing the name and amount, do not leave too much space between the letters. This increases the possibility of tampering in name and amount. Apart from this, cheque that the amount entered in words is the same in figures. If the amount does not match, the cheque may also be rejected.
4. Write the correct date
Whenever you issue a cheque, you should write the date correctly. You should never be confused about the date. If you fill the wrong date then your cheque may bounce. Along with this, it is very important for you to correct your financial records.
5. Double lines at the corners of the cheque
To keep bank cheques safe, issue crossed cheques whenever necessary. With this you can prevent it from being misused. These lines mean that the account payee i.e. the account amount should be received only by the person in whose name the cheque has been cut.
