Generally in connection with business or insurance company and banks or any other companies demand cancel Cheque from their customers. Apart from this, many companies take cancellation Cheque from their employees at the time of job. Even though we may be moving fast in this age of digital, but this tradition remains intact. In such a situation, the question must have come in your mind that why is there a need for a case Cheque?
Please note that transactions cannot be done through canceled cheques. It is only used to verify your account. When a canceled Cheque is given to someone, Canceled is written in the middle of two parallel lines. So that no one can misuse the Cheque.
Sign in canceled Cheque is not necessary
When you give a canceled Cheque to someone, there is no need to sign it. Only cancel has to be written on it. Apart from this, a cross mark can be made on the cheque. This type of Cheque only verifies your account. If you gave a canceled Cheque of the bank to any company, then it means that you have an account in that bank. Your name may or may not be on the Cheque. Your account number is written on it. Along with this, the branch in which the account is there. Its IFSC code is also written. In such a situation, the cancellation Cheque is useless, thinking that it should not be given to anyone.
Which ink to use in canceled Cheque
You should always use only Black Ink (Li Ink) and Blue Ink (Blue Ink) for Cancel Cheque. Ink of any other color should not be used. Otherwise your Cheque will be invalid.
When is the cancellation Cheque required?
When you do any work related to finance, a canceled Cheque is asked. If you take a car loan, personal loan, home loan, then the lenders ask you to cancel the cheque. This Cheque is done only to verify your account. If you withdraw money from Provident Fund offline, then a canceled Cheque is required. On the other hand, when investing in mutual funds, companies ask for information about canceled cheques. Apart from this, it is also required when buying an insurance policy.
