Do I need to sign a cancelled cheque?
I was wondering if I really need to sign a cancelled cheque whenever submitting it to authorities who require it. The answer is 'NO'. The modern cheques issued by the banks carry all the relevant information viz. your bank account number, bank name, full address - and that is more than enough information. I think this is an important information that everyone needs to know.
I'm in the process of withdrawing funds from my dormant EPF account and the process requires submitting a cancelled cheque along with the mandatory forms. I wondered what purpose does a cancelled cheque serve and some research on the Internet revealed that it's nothing but a confirmation that you hold an account with the bank. Not sure if it's a good way to verify; but that's what the PF department wants.
How to properly cancel a cheque?
Draw two parallel lines, separated by a distance of about 1.5 to 2 cm extending from the bottom left corner to the upper right corner of the cheque. Write in all caps " C A N C E L L E D " in between these two lines - and you are done! No need to sign it.
Hope you find this information useful. If you have questions - you may ask them below. I'm not an authority; but will try to offer as much help I can.
I'm in the process of withdrawing funds from my dormant EPF account and the process requires submitting a cancelled cheque along with the mandatory forms. I wondered what purpose does a cancelled cheque serve and some research on the Internet revealed that it's nothing but a confirmation that you hold an account with the bank. Not sure if it's a good way to verify; but that's what the PF department wants.
How to properly cancel a cheque?
Draw two parallel lines, separated by a distance of about 1.5 to 2 cm extending from the bottom left corner to the upper right corner of the cheque. Write in all caps " C A N C E L L E D " in between these two lines - and you are done! No need to sign it.
Hope you find this information useful. If you have questions - you may ask them below. I'm not an authority; but will try to offer as much help I can.
Replies
-
Arun GoyalThat's right! One need not to sign a cancelled Cheque as things like magic pen (ink remover) are easily available in market. Any ill-minded can take advantage on your lose.. -
Anoop Kumar
Yes, It just for self-verification kind of thing.Kaustubh Katdarea confirmation that you hold an account with the bank. Not sure if it's a good way to verify; but that's what the PF department wants.
If anyone ask to sign it better make it
1.5 to 2 cm extending from the bottom left corner to the upper right corner of the cheque. Write in all caps " C A N C E L L E D "
and sign over the lines, not at the signature panel 😁 . -
Kaustubh KatdareThe bad part of the entire PF claim is that the forms need you to put a 'thumb impression' and also sign across the photographs. Feels almost like we are in 1901! I really wish to see everything getting digital.
One of the reasons for providing a canceled cheque could be to prevent people from making mistakes in quoting their bank account number. I've seen how careless people are when filling out information. -
Anoop KumarExcept PF withdraw PF things are now hassle free , UAN to track and online transfer to new account.
Everything related to PF is on one portal now : #-Link-Snipped-# -
Ankita KatdareI just found out there are one too many places where one needs to submit a cancelled cheque.
Creating Demat accounts, KYC - Know your customer (KYC) for investments, for EMI payments, for Electronic clearance service (ECS) : read mutual funds, insurance policies and like Biggie said above - EPF withdrawals.
Makes me want online transactions even more.
You are reading an archived discussion.
Related Posts
Techkriti is an annual inter-college Technology and Entrepreneurship festival organized by the students of IIT Kanpur.
This year the flagship event will be organized on 19-22 March. CrazyEngineers is proud...
Twistofy, founded by Neha Shah, is India's first creativity platform focused on Creative Curation (Discovering Creativity), DIY Workshops (Rekindling Creativity) and Customized Gifting Solutions (Unleasing Creativity). Twistofy offers various services...
How to print \n in C language
After announcing the mid-range Titanium Mach One handset in January, the Indian mobile manufacturer, Karbonn has quietly launched its successor- Titanium Mach Two S360. Although, the company has not yet...
Japan-based manufacturer, Olympus Corp. has unveiled its new retro-styled camera called ‘Olympus Stylus SH-2’ with features such as 24x optical zoom, 5-axis image and video stabilization, RAW support and many...