Cheque Signature Rules: Cheques are used for many financial transactions. A small mistake while filling a cheque can cause our cheque to bounce. There are some cheques in which it is very important to sign at the back. If this is not done, then you may have to suffer heavy consequences
These days, the digital era has arrived. People can transfer money in a blink of an eye with just one click. UPI has given a boost to digital transactions. Meanwhile, many payments are still being made through cheques. If you also transact through cheques, then it is very important for you to know the rules related to it. A small mistake can lead to a big loss. The cheque will also bounce. We are telling you about the rules related to cheques. So that in future there is no mistake of any kind while issuing cheques.
A cheque is a powerful financial instrument. It facilitates the exchange of money. Before signing any cheque, you should know who the person to whom you are giving the cheque is and what is its purpose?
It is very important to sign at the back of this cheque
While issuing a cheque, not all types of cheques are signed on the back. But there are some cheques in which signing on the back is very important. There are bearer cheques in which signing is very important. If you are giving a bearer cheque to someone, then you must sign on the back. On the other hand, if you have an order cheque, then there is no need to sign on the back. A bearer cheque is one which you have to deposit in the bank. It does not have the name of any person. Therefore, it is important to sign on the back.
That is why bearers sign on the back of cheque
If you issue a bearer’s cheque and it gets stolen by mistake, you may suffer a huge loss in such a situation. There is no name of any person in this cheque. Hence, the bank asks you to sign on the back of it. Without signing on the back, the bank does not accept the bearer’s cheque. This ensures that the transaction done through this cheque has been done with your consent. If there is any mistake in this, the bank will not be responsible for it.
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