Latest Jobs

What Is A Cancelled Cheque?

What Is A Cancelled Cheque?



A cancelled cheque in India 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. From withdrawal of EPF funds to setting up an Electronic Clearance Service from the account, a cancelled cheque is required in many cases.
But before we talk about the use of cancelled cheques, let us tell you how to issue a cancelled cheque.


As mentioned above, a cancelled cheque works as a proof that you have an account in that particular bank. Given below are a few instances where you may be required to submit a cancelled cheque-
  • When you take any loan whether it is a home loan, car loan, personal loan, etc., the bank will ask you to submit a cancelled cheque.
  • When you take consumer durable loan from a store at the time of making a big-ticket transactions and choose to deduct EMIs on standing instruction, then the financial provider will ask for a cancelled cheque.
  • At the time of investing in mutual funds, the investment organizations emphasize the most on verifying the KYC Details of the customer. So in order to verify your account details, you will be required to submit the cancelled cheque.
  • When you want to withdraw your provident fund through the offline method, you must submit the cancelled cheque along with the other documents to verify that the account details mentioned on the form belong to you and not to anyone else.
  • A cancelled check is also needed to register for Electronic Clearance Service that automatically deducts amount from your bank account.
  • At the time of purchasing an insurance policy, the insurance company asks you to submit your cancelled cheque.

Issuing a Cancelled Cheque

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. A cancelled cheque doesn’t require your signature. It gives details such as account number, account holder’s name, MICR code, name and branch address of the bank.
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 over to is extremely trustworthy. Got it?

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. A cancelled cheque doesn't require your signature. It gives details such as account number, account holder's name, MICR code, name and branch address of the bank.

How does a Cancelled Cheque look like?

Why Cancelled Cheque is required?

Is Cancelled Cheque safe?


How do you write a Cancelled check?




  1. How to cancel a cheque?
For cancelling a cheque, you just need to strike two lines across the cheque and write ‘Cancelled’ between them.
  1. Can I use a red pen to cancel a cheque?
You should always use blue or black ink to write or cancel a cheque. Any other colour will not be accepted.
  1. Are there any risks related to cancelling a cheque?
No, since a cancelled cheque cannot be used to withdraw money from your account.
  1. What all information can one get from a cancelled cheque?
The cancelled cheque can give out information such as your bank account number, branch name and address and MICR Code.
  1. Do I need to sign the cancelled cheque?
No. You are not required to sign the cancelled cheque as it is only used as a proof and not for a transaction.
  1. I have drawn two lines across the cheque. Is it cancelled?
No. You must write the word “Cancelled” on it, otherwise it will not be accepted as a cancelled cheque. At the same time, it can also be misused by someone else.
  1. For what purpose can cancelled cheques be used?
Cancelled cheque is used as a proof that you hold an account in the given bank. These may be required at the time of taking a loan, investing in mutual funds, setting up Electronic Clearance Service, taking insurance policy and for other similar purposes.


Write across the cheque between two lines CANCELLED. Then cancel the words Or Bearer printed on the cheque. Finally at the left upper corner put two lines To cancel a cheque, you just need to strike two lines across the cheque and write the word “Cancelled” across it. You don't need to sign the cancelled cheque. It only works as a proof that you have an account in the bank. cancelled cheque is a common KYC document and is used for the purpose of verifying a bank account. A cheque contains various details, like cheque number canceled check is a check that has been paid or cleared by the bank it was drawn on after it has been deposited or cashed.

With the boom of internet and online marketing, anything and everything under the sun is just a few clicks away. Just like every other business sector, even banking has gone all out in providing various services online, making lives easier for millions of customers. This includes Fixed DepositsSavings Account and Loans. But even as online banking is growing exponentially, there are certain aspects of banking that need to be taken care of in a traditional way.  

cancel cheque meaning in hindi

cancelled cheque for pf

cancelled cheque misuse

cancel cheque kaise banate hain

cancelled cheque leaf means

how to cancel cheque book

cancel cheque canara bank


cancelled cheque axis bank



What is a Cancelled Cheque?

A cheque is referred to as a 'cancelled cheque' when you draw two lines across it and write the word ‘cancelled’ inside the two lines. Other than this, there is no need to mention anything else on the cheque. The cheque holds no monetary value, which means you cannot use it for transferring funds from one account to another. The intention behind crossing a cheque is to ensure that it does not get misused by anyone. A cancelled cheque is a common KYC document and is used for the purpose of verifying a bank account. A cheque contains various details, like cheque number, IFSC code, account number and MICR code, and if the cheque is not crossed and cancelled, it can be misused should it fall in the wrong hands.

When do you Require a Cancelled Cheque?

Cancelled cheques are used for several different reasons. Some of them are:
  • KYC - Cancelled cheques are generally used for KYC procedures and documentations. If and when you want to invest in market-linked instruments, such as mutual funds and stocks, the financial institution can ask you to submit a cancelled cheque.
  • EPF Withdrawal - Cancelled cheques are often times required to be submitted by salaried individuals when they want to withdraw money from their EPF accounts. If you are a salaried employee looking to take money out of an EPF account, you will have to first attach a cancelled cheque with the withdrawal form and then submit them to your employer or the Employees’ Provident Fund Organisation. The cheque helps in confirming the details of the account to which the amount is to be directly credited.
  • Electronic Clearing Service (ECS) - ECS is an electronic mode of funds transfer, facilitating paperless credit or debit transaction, from one bank account to another. If you wish to make use of ECS for deducting money from your account every month, you will be required to submit a cancelled cheque.
  • Demat Account - At the time of opening a demat account, which is used by investors to hold their shares in an electronic form, you will be required to submit a cancelled cheque with the account opening form and other KYC documents.
  • EMIs - Banks offer various loans whose payments can be made on an EMI basis. They will insist on a cancelled cheque to complete the process. A cancelled cheque is necessary for finalising EMI payments.
  • Insurance - When you buy an insurance policy, such as term plan, endowment plan or health plan, you will be asked to handover a cancelled cheque to the insurance company.

How to Cancel a Cheque?

In order to cancel a cheque leaf, all that you have to do is draw two parallel lines across the cheque and mention the word ‘Cancelled’ inside the two. There is no need for a signature on a cancelled cheque. The details that will be communicated through a cancelled cheque include the account number, name of the account holder, MICR code, name of the branch and branch address of the bank. A cancelled cheque serves as a proof that you have an account in that particular bank whose cancelled cheque you are submitting.

Use of Cancelled Cheques

  • Most investment organisations give utmost importance to Know Your Customer (KYC) guidelines. So if you are investing in Mutual Funds or the stock market, the company will ask for a cancelled cheque to verify if the account associated with the investment actually belongs to you.
  • From purchasing of accessories like a mobile phone, TV or fridge to applying for a Car LoanHome LoanEducation Loan, etc., EMIs have become the favourite mode of payment. And to set the process of EMIs rolling, a cancelled cheque is required as proof that you hold a bank account.
  • A cancelled cheque is needed to set up the Electronic Clearance Service, which automatically deducts money from your account every month.
  • To withdraw your provident fund amount, companies generally ask for a cancelled cheque with your name on it to validate your account details.
  • Even while purchasing an insurance policy, a cancelled cheque is required.
Cancelled cheques are, typically, used to prove that a certain account number belongs to you as they state your bank account number and name As the name suggests, a canceled cheque is one that is crossed and the term "Cancelled" is written on it. Except this, nothing else needs to be In order to cancel a cheque, you only need to strike two lines across the cheque. Apart from this, you need to write the word 'Cancelled' across


Post a Comment

0 Comments