How To Fill A Cheque ?

How To Fill A Cheque ?

15 May, 2024


  • A cheque is a financial instrument used to make payments to people and entities.

  • Cheques can be of different types, but bearer and payee cheques are the most common.

  • You should be careful while writing a cheque, as overwriting can cause banks to reject cheques.

In these digital times the cheque remains one of the most widely used instruments for financial transactions. Whether it is paying bills, making payments, or transferring funds, cheques offer a convenient and secure way to handle monetary transactions. However, when it comes to filling or writing a cheque, there are some do’s and don’ts to keep in mind. This guide aims to explain the many nuances of cheques, covering everything from understanding what a cheque is to the various types and how to fill a cheque.

What Is A Cheque?

A cheque is a written order directing a bank to pay a specific sum of money to a named person or entity. It is essentially an instrument that facilitates the transfer of funds from one party to another. In India, cheques are governed by the Negotiable Instruments Act, 1881, and are widely accepted across various sectors for both personal and business transactions.

Different Types of Cheques

Following are the different types of cheques:

  • Bearer Cheque

This type of cheque is payable to anyone who presents it to the bank, simply by presenting the cheque itself. It may or may not specify the payee’s name and can be encashed by anyone bearing it.

  • Order Cheque

A cheque which is payable only to the person named on the cheque is called an order cheque. The payee needs to endorse the cheque on the reverse side before depositing it into their account.

  • Crossed Cheque

Crossed cheques are those that are marked by two parallel lines on the top left, with or without the words ‘a/c payee’ written between the lines. Any payee who has been issued a payee cheque is typically required to deposit the cheque in their account and not seek a direct cash payment.

  • Post-dated Cheque

A cheque which carries a future date on it is called a post-dated cheque. It cannot be deposited and encashed until the date specified on the cheque has arrived. This type of cheque is often drawn for future payments (e.g. loan EMIs, scheduled payments, etc.) or to secure a transaction.

How to Fill a Cheque?

Let us now look at the simple process of how to write a cheque. Here are the steps:

  1. Begin by writing the date on the top right-hand corner of the cheque. Depending on the type of cheque you are writing, the date could be the current date or one in the future.

  2. Write the name of the person or entity to whom you are making the payment on the line that says, ‘Pay to the order of’. In case of payee cheques, remember to need to add the two parallel lines.

  3. In the box provided on the right-hand side of the cheque, write the amount you wish to pay in figures. Ensure clarity, accuracy, and proper commas to avoid any confusion.

  4. Below the payee’s name, there’s a section to write the payable amount in words. Start with ‘Rupees’ followed by the amount in words. For example, if the amount is ₹5,000, write ‘Rupees Five Thousand Only.’

  5. Sign the cheque at the bottom right-hand corner. Your signature authenticates the cheque and authorises the bank to make the payment.

Best Practices While Writing A Cheque

Besides knowing how to fill a cheque book, you should remember these best cheque-writing practices:

  • Accuracy: Double-check all entries to ensure accuracy in the payee’s name, amount (both in figures and words), and date. Also avoid overwriting as it can lead to rejection of the cheque.

  • Security: Always keep your cheques in a safe and secure place to prevent misuse or unauthorised access. Never sign blank cheques or leave any fields incomplete.

  • Record-Keeping: Maintain a record of all issued cheques, including the payee’s name, amount, and date in the cheque book’s index section. This practice helps with tracking transactions.

  • Timeliness: Ensure that you have sufficient funds in your account before issuing a cheque to avoid bounced cheques and potential penalties resulting from such situations.

  • Voiding Unused Cheques: If you have unused cheques or need to cancel a cheque, void it by writing ‘VOID’ across the face in large letters. This prevents misuse while retaining the cheque for record-keeping purposes.

Experience Convenient Banking Services With HDFC Bank Accounts

With HDFC Bank, you can experience hassle-free banking. You can open your account online and receive a cheque book instantly, to start managing your finances with ease. You can also enjoy the convenience of making rapid payments and transactions, backed by HDFC Bank’s reliable services and comprehensive banking solutions. Join us today to unlock a world of seamless banking experiences tailored to your needs.

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.

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