Friends, in today’s time almost everyone has to deal with bank transactions. Whenever we open an account, we are given a cheque book. With we can pay from our account by giving it to any person. Many times we must have also heard about the canceled cheques. Do you know what is this canceled check after all? Today we are going to talk only about the canceled cheques.
What is Cheque?
- First of all, we talk about the check itself, what is this check after all?
- A check is a valid paper issued by a bank whose value can be much higher than a note.
- If we want to give some amount to another person, then instead of giving cash, we can pay the amount only by giving a cheque.
- That amount is deducted from our account by check and deposited in that person’s account. If that person wants, he can also withdraw cash from the bank.
- One thing that is very important in the check is that we should not give ourselves or our own checks to anyone.
- In the event of self or self’s check being lost, the person who will get this check can go to the bank and withdraw cash.
- For this reason, it is especially important to keep in mind that self or own checks should not be given to anyone.
Which details are there on the cheque?
- Account Holder Name
- Bank Account Number Account Number
- Bank Branch Name Bank Branch Name
- Bank Branch Address
- IFSC Code IFSC Code
- MICR Code MICR Code
What is a canceled check?
- As soon as we mention the name of the canceled cheque, we get confused that what is it after all.
- A canceled check is just an ordinary check
- In an ordinary cheque, two lines are drawn and Cancel is written in between them.
How to make a canceled cheque?
- Draw a check from your cheque book.
- Draw two lines in the same straight line on the withdrawn cheque.
- Draw the lines so long that the entire check is covered with lines.
- Write Cancel in clear words between the two lines.
- Here one thing has to be kept in mind nothing is to be written on the canceled check and neither is it to be signed.
Where is a canceled check useful?
- To open a Demat account.
- in an insurance policy.
- Online KYC.
- in EMI payment.
- Wherever information related to the account is sought.