What Is A Cancelled Cheque, And How Does It Look Like?

A cheque is a document issued by a bank to the account holder. If you have a chequebook, you will find several cheques in it. Each cheque contains vital information about your bank account.

A cancel cheque image displays your name, account number, bank address, cheque number, date, and IFSC code. You can use a cheque to pay various utility bills, school fees, insurance premiums, etc.

However, you cannot use a cheque to check your bank balance. Google ‘bank balance check number‘ to be landed on websites that provide information about checking bank balance. Piramal Finance has a straightforward procedure and bank balance checking numbers.

If you wish to share your bank details, you can send them a cancel cheque image from your chequebook. Beware not to send a blank cheque. Your empty cheque can be misused to withdraw money without your consent. Wondering what the difference between a blank cheque and a cancelled cheque is?

Blank cheque vs. cancel cheque image

A blank cheque is a cheque with only printed details that come in default from the bank. Nothing is written on a blank cheque. On the canceled cheque, you must write “CANCELLED” across the cheque by drawing two parallel lines. 

Dividing the two parallel lines diagonally from the bottom left of the cheque to the top right is recommended. Between the two parallel lines, you have to write the word “cancelled.” This conveys to your bank that you have canceled the cheque.

Cancel cheque images from a friend or bank representative will help you understand in detail how you can mark a cheque canceled. You can also inform your bank that you have canceled a cheque. Make sure you tell your bank the cheque number. Once canceled, you cannot use it for any purpose.

When do you require a canceled cheque?

A canceled cheque becomes essential when there is a need for KYC (know-your-customer) or to prove you have a bank account with a particular bank. A cheque gives the other person confidence that you maintain a sufficient balance in your account. 

Also, in the case of payment failure, the concerned party can take the necessary action based on a canceled cheque submitted. 

When you are asked by an insurance agent or a loan agency, make sure not to sign anywhere on the cheque. A canceled cheque is necessary for various situations, including those that are explained in more detail below:

• EPF account

A canceled cheque is required to withdraw the funds from your EPF account. Without a canceled cheque, The EPF will not release your money from your EPF account. 

• Bulk posting

The electronic clearance service, or ECS, refers to the movement of funds from one bank to various other bank accounts. Before allowing you to use this feature on your bank account, the bank will require you to submit a cheque. However, raising a cheque to know your account balance is unnecessary. You can find the bank account balance using a toll-free number to check your bank balance.

• EMIs

Suppose you’re paying off your loan or credit in easy monthly installments. In that case, your bank or NBFC will ask you for a canceled cheque before confirming that you can afford to make payments (EMIs). Your bank should have sufficient money at the time of withdrawal. Perform bank balance checks using numbers provided by the banks.

• Demat account

To open a Demat account, the agency will require you to produce a canceled cheque alongside other KYC documents, such as proof of identification, address, etc. It is in addition to the documentation needed to demonstrate that you are who you claim to be and reside where you claim to dwell.

• Insurance application

When applying for insurance coverage, you must present a canceled cheque as evidence of having a bank account. Alternatively, insurance providers also accept account statements or a bank passbook photocopy.

Can I get a cheque canceled online?

Cancelling cheques is a common practice in the banking industry. Apart from the uses mentioned above, there are other reasons why you need to cancel a cheque. If the cheque is issued, but you want to stop that payment, or when you have paid using other means to the payee. It can be an efficient way to avoid owing money; save time and money. There are a few ways to cancel cheques online. Some standard methods include online banking, phone banking, or conveying the information to the bank through a phone call.

Want to know how to cancel a cheque in detail? Be sure to ask your bank or Piramal Finance-like financial institutions. Canceling a cheque can save you time and money, so make sure to do it before something important arises.

Secret tips to prevent misuse of a canceled cheque

A secret tip that most of the articles on the website do not tell, but you find here is – Make the cheque pre-dated by three months. For example, if you are issuing a canceled cheque on September 16, 2022, write the date on the cheque as 15/03/2022 or earlier. This way, even if someone tries to use your cheque, it will be impossible to use, as a cheque is valid for only three months.

Also, write “NONE” in the payee blank on the cheque. Now, in the amount blank, write “Rupees Zero only.” After doing all this, strike two lines from the bottom left corner of the cheque to the top right corner. In between these lines, write “Canceled.” This way, the cheque is protected from any form of misuse.

Many websites on the internet provide tons of information on canceling cheques. At Piramal Finance, you will find authentic and personalized information on financial products and services, including various loans and financial calculators.