At times you are asked to submit a cancel cheque to verify your bank account. This can be for completing your KYC, for a number of bank verification processes, or maybe for some other reason.
The best way to cancel a cheque is to strike two lines across the cheque and write the word “CANCELED” across it.
In this article, you will get to know the following points about canceling a cheque,
Let’s see each of these points in detail…
Steps to cancel a cheque
To write a canceled cheque,
- First, take an empty cheque from your bank chequebook.
- Make sure it’s NOT signed.
- Now strike two lines diagonally across the cheque with a blue pen.
- Next, write the word ‘Cancelled’ between the lines.
By following these steps you can easily write a canceled cheque.
Uses of a canceled cheque
A canceled cheque can be used in a number of places such as,
- To verify your bank account during KYC.
- As a proof of bank account while taking a loan.
- To verify your bank while withdrawing your PF.
- For bank account verification while investing in Mutual Funds or buying insurance policy.
Things to keep in mind while canceling a cheque
Things you should keep in mind while canceling a cheque are,
- Do not sign the canceled cheque.
- It is recommeded to write the word ‘CANCELED’ in caps.
- Try using a blue pen while writing a canceled cheque.
FAQs about canceling a cheque
How to cancel a cheque?
To cancel a cheque, you need to strike two lines across the cheque and write the word “CANCELED” across it.
Can I use a canceled cheque to verify a bank account?
You can use a canceled cheque to verify your account in certain places such as for KYC, withdrawing your PF, investing in a mutual fund, etc.
Do I need to sign the canceled cheque?
No. You don’t need to sign a canceled cheque.
(Disclaimer: The information provided in this article is for educational purposes only. The screenshots/logos used are the intellectual property of the respective owners. dreamtrixfinance.com neither endorses nor is affiliated with the brands mentioned. This is not financial advice.)