Are you in need of a cancelled cheque for verification purposes, such as setting up automatic payments or providing proof of banking details? Don’t worry, creating a cancelled cheque is a simple process that can be done quickly and effectively. In this comprehensive guide, we will walk you through the easy steps to follow to create a cancelled cheque.
What is a Cancelled Cheque?
A cancelled cheque is a cheque that has been marked as cancelled by the account holder. It typically has the word “CANCELLED” written across it, rendering it non-negotiable. Cancelled cheques are commonly used for verification purposes to provide proof of account details, such as account number, IFSC code, and MICR code.
Steps to Create a Cancelled Cheque
Step 1: Gather the Necessary Materials
Before you begin, make sure you have the following materials handy:
– A blank cheque from the account you wish to cancel
– A pen or marker
Step 2: Write “CANCELLED” Across the Cheque
Take the blank cheque and clearly write the word “CANCELLED” across the face of the cheque in large, bold letters. Make sure the word covers a significant portion of the cheque to effectively mark it as cancelled.
Step 3: Void the Cheque
To further ensure that the cheque is non-negotiable, you can void it by drawing diagonal lines across the cheque. This step adds an extra layer of security to the cancelled cheque.
Step 4: Verify the Details
Double-check the details on the cancelled cheque to ensure that all the necessary information, such as your name, account number, IFSC code, and MICR code, is clearly visible and accurate.
Step 5: Store the Cancelled Cheque Securely
Once you have created the cancelled cheque, store it securely in a safe place. It is recommended to keep it with your important financial documents for easy access when needed.
Why Do You Need a Cancelled Cheque?
- Verification: A cancelled cheque is often required by financial institutions and service providers for verifying your bank account details.
- Setting Up Automatic Payments: Many companies require a cancelled cheque to set up automatic payments for services such as utilities, loans, or insurance.
- Proof of Account Details: A cancelled cheque serves as proof of your account number, IFSC code, and MICR code, which may be needed for various financial transactions.
Frequently Asked Questions (FAQs) About Cancelled Cheques
Here are some commonly asked questions about cancelled cheques, along with concise answers:
1. Can I use a cheque that has already been used for creating a cancelled cheque?
No, it is not recommended to use a cheque that has already been used for any transaction. Always use a blank cheque to create a cancelled cheque.
2. Do I need to sign the cancelled cheque?
No, you do not need to sign a cancelled cheque. The word “CANCELLED” written across the face of the cheque is sufficient to mark it as non-negotiable.
3. How long is a cancelled cheque valid for?
There is no expiration date for a cancelled cheque. Once created, it can be used for verification purposes indefinitely.
4. Can I scan and email a cancelled cheque?
Yes, you can scan a cancelled cheque and send it electronically as proof of your banking details. Just ensure the details are clear and legible in the scanned copy.
5. Is a cancelled cheque the same as a void cheque?
While both terms are often used interchangeably, a void cheque typically refers to a cheque that has not been filled out or signed, whereas a cancelled cheque specifically has the word “CANCELLED” written across it.
Conclusion
Creating a cancelled cheque is a simple yet essential task that can come in handy for various financial transactions and verifications. By following the easy steps outlined in this guide and understanding the importance of a cancelled cheque, you can confidently provide proof of your bank account details when needed. Remember to keep your cancelled cheques secure and easily accessible for future use.
