How to write a cheque?

Have you ever written a cheque? As our country moves towards digitalization, people have become more comfortable with net banking, UPI, and e-wallets than writing a cheque. Still there are instances where the payment may be a large amount or the other party does not accept an online transfer of funds. In such cases, you may have to write a cheque.

Writing a cheque can seem like a very easy task for most people. But make one mistake and it can become a huge loss for you. Let’s look at the various components in a cheque that you need to know about.

1. IFSC code (Indian Financial System Code): This is an 11-digit unique code assigned to each branch of every bank by the Reserve Bank of India.
2. Bank name, branch name, and address: These are the details of the payer’s bank.
3. Account number: This is the payer’s bank account number.
4. Cheque number: It is a unique number given to each cheque. In case a cheque goes missing or the expected transaction does not take place, this number can be used to trace its whereabouts.
5. MICR code (Magnetic Ink Character Recognition technology): This 9-digit code is used to identify the city, bank, and branch of the bank account to which the cheque belongs.

How to write a cheque?

Before writing a cheque, make sure that the desired funds are available in your bank account. Cheque bounce is a criminal offense.

1. Start with the date. This is an important field since a cheque remains valid for only three months from the date of issuance.
2. Draw two parallel lines at the top left corner of the cheque and write A/C payee in between, as shown in the image, and cut off the “or Bearer”. This is to make sure that the cheque gets deposited only in the bank account of the receiver. Otherwise, anybody in possession of the cheque will be able to withdraw the money just by visiting the bank.
3. Fill in the name of the receiver in the field “Pay”. If the receiver is an individual, mention their first and last name. If the receiver is a company, write its exact name. It is always a good practice to confirm the name of the receiver before writing the cheque. This is to avoid any ambiguity concerning the payment. Draw a line to fill in the empty spaces so that nobody can make any alterations once you have written the cheque.

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