A cancelled cheque simply refers to any cheque that has strike marks on it with the words ‘CANCELLED’ written across. A cancelled cheque is considered to be proof that you actually hold an account with the bank. A cancelled cheque is required in many cases such as Opening a Demat account, withdrawal of EPF funds, setting an Electronic Clearance Service from the account. Next, let me illustrate you how to make a Cancelled Cheque.
Making a Cancelled Cheque
1. To cancel a cheque leaf, all you need to do is draw two parallel lines across the cheque and write ‘CANCELLED’ in between the two lines. (like in the sample above)
2. A cancelled cheque doesn’t require your signature or Date.
A cancelled cheque provides information such as account number, account holder’s name, MICR code, IFSC code, name and branch of the bank. Even though no one can withdraw money from your account using a cancelled cheque, fraudulent activities using a cancelled cheque have happened in the past. So be very careful when you issue a cancelled cheque and make sure that the person you are handing it is trustworthy.
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