Today we’re going to learn how to fill cheque correctly so we never get into unnecessary trouble. If you think it’s not your cup of tea then this 7 steps cheque filling guide is for you. After reading this post, you will not only learn right way to do it but also some important points that you should take care of. So let’s dive in!
Cheque is a prominent non-cash payment method for making payments and settling deals. Many developing economies are adopting digital payment solutions but as of now cash and cheque are world’s preferred payment methods. Therefore, one should know the proper way to fill a cheque.
If you don’t know the right way to fill cheque then someone may misuse your cheque for example if you don’t cancel the word ‘bearer’ and you lost your cheque then anyone can encash it.
In this post, I’ll be showing you how to fill cheque and important points you should not avoid while writing the same.
If you already have filled some cheques in the past then you might be thinking that there’s no big deal. But after reading this post, you’ll find some mistakes that you were making while writing a cheque.
On the contrary, if you think it’s not your cup of tea then after reading this post, you’ll never say it again. Yes, anyone can fill cheque easily but only few know how to fill cheque properly so nobody can misuse it.
Before you fill cheque, you’d know what details are printed on your cheque.
What is cheque?
By definition cheque is a specially printed form, containing an individuals bank account details, to order bank to pay a specific amount from his or her account to the person whose name has been written on it.
Understand details mentioned on a cheque for example cheque number, MICR code, cheque ID and the like
You can see many numbers and details on your bank cheque. If you already aware of them then pat your back because you’re one of the only few people who know the details! If you don’t know, don’t despair, I’ll help you understand your bank cheque details.
Above is an HDFC Bank cheque photo. All banks cheque look like this; just the format and color theme change. If you see SBI cheque or other bank’s cheque then you’d hardly find any difference.
At the top, you can find IFSC Code. All bank branches who allow National Electronic Fund Transfer have Indian Financial System Codes (IFSC). To transfer money electronically, you’ve to mention your bank’s IFSC Code.
You can also see your bank account number on your bank cheque and at the bottom right corner you can see your name.
Now, if you look at the bottom line of your bank cheque then you’ll see some numbers or codes there. First 6 numbers are your cheque number.
Next 9 numbers are your MICR code. MICR stands for Magnetic Ink Character Recognition. This number helps banks do cheque sorting quickly. With MICR code, machine understands your cheque belongs to which bank and where its location is.
Everyday large banks receive thousands of cheques therefore manual sorting and processing is not possible. Bank introduced this MICR code to do the job in few seconds with the help of machine. MICR code is further subdivided into three parts.
MICR code’s first three digits help machine to recognize the location of branch who has issued this cheque; usually these are your city PIN code’s first three numbers. Next three digits help to know the name of the bank for e.g. HDFC bank code is 240 and SBI bank code is 002, and similarly last three digits show exact bank branch location.
After MICR code, we’ve 6 digits Account ID code. It is not that important but it shows your bank account details.
In the end, we’ve Transaction ID. With help of Transaction ID, machine knows whether your cheque is a local cheque or payable at par at all branches. If your bank cheque is a local cheque then it can only be deposited in your home bank branch. Or if it belongs to second category then it can be deposited in any bank branch.
Now you know what details are printed on a cheque. Before I show you how to fill cheque, Let’s take a look at some important points that we should remember while filling cheque.
Important points you should not avoid while filling cheque
- Never ever issue a bearer cheque because if you lost it, anyone can encash it. Therefore, always cancel the word ‘bearer‘ from your cheque. But remember while filling cheque, if you do so then only the person whose name is mentioned on it can cash your cheque.
- After writing payee’s name, put a line in the empty space left so no one can add his or her name. Similarly, put a line after writing the amount to be paid to make sure no one can write anything after you’ve written the amount.
- It’s always advisable that if you’re issuing a bank cheque leaf in favor of someone then make sure your bank only pays the amount in the payee’s bank account. Though, it’s not always necessary, however, it’s recommended. To order bank to pay the amount in only bank account, just write ‘A/C Payee‘ at the top of the cheque.
- If you’re going to pay a large amount through cheque then make sure to mention payee’s bank account number on it. This way the cheque will be payable in only payee’s bank account.
Now you’re ready to know cheque filling steps. Below video will help you know how to fill cheque. Video language is Hindi. Don’t understand Hindi? Then read the written instructions.
How to fill cheque
I’m going to fill HDFC cheque and SBI cheque. As mentioned above, all banks cheques have same details, only format and color theme change therefore no matter what bank’s cheque you’ve, you can read following cheque filling guide.
Note: You can also fill your cheque in your local language say Hindi, Punjabi or other. Below is a sample (can also be used to know how to fill SBI cheque).
1. Write name of the payee next to ‘Pay‘. Note: Write ‘Self‘ if you’re writing a self cheque to withdraw money from your own bank account. Write just after ‘Pay’, don’t leave blank space to make sure no one can make changes. Thereafter, put a line to make sure no one can add another name on your cheque.
2. Now write amount that you want to pay through cheque in words in ‘Rupees रुपये‘ section. Same rule here, don’t leave any blank space, write ‘only‘ at the end of the amount and put line after writing the amount.
3. In the next step, write amount in numbers in the given box and put ‘/-‘ at the end.
4. At the bottom right corner, you can see your name, simply sign near your name. Your signature should match the specimen signature available with the bank.
5. Cancel ‘Or Bearer and या धारक को‘. If you do not cancel it then anyone can encash cheque.
6. Now at the top right corner, you can see date column. Write cheque issue date there. Note: You can write today’s or next date on your cheque. It’s not necessary to write today’s date on cheque. For example, say I’m filling cheque on 1 January, 2020 but I want payee should deposit my issued cheque after 15 January then I can write 15-01-2020. This way payee will need to deposit issued cheque on or after 15 January; he cannot deposit cheque before the date of issuance.
7. In the end, draw two parallel lines on the top of the cheque and write ‘A/C Payee‘ between them. As mentioned above, it’s not always necessary but you’re advised to write. Note: Don’t write account payee if you’re filling self cheque.
I hope from now you know how to fill cheque correctly.
What is a self Cheque?
When owner of the account fills a cheque to withdraw money for himself, it’s called self cheque. He writes ‘Self’ (in payee’s field) on the cheque.
What is bearer Cheque?
A cheque that is payable to anybody whosoever presents it to the bank is called ‘Bearer Cheque’. We’d refrain from issuing bearer cheque, most of the time.
What is the maximum time for withdrawal a cheque?
Time varies bank to bank, but in most the cases, the time limit for cheques is 3 months from the date of issue.
How to fill self cheque?
To fill a self cheque, in ‘Payee’ field write ‘Self’ and fill the other details as normal, just don’t strike-through ‘Bearer’. For more information, read above guide on how to fill cheque.