Here, we will walk you through the process of writing a check in India. It will provide details on the format of the check and how to fill in the various fields on the cheque. By the end of this article, you should have a solid understanding of how to write a check.
Do you ever write or issue checks? There are some safeguards that you should always keep in mind while writing a check for any reason. The current date, recipient’s name, numerical and alphabetical amount values, and other information must be properly checked and written.
Who are the parties in a check transaction?
There are three parties involved in a check transaction:
- Drawer is the person who drafts or issues the cheque.
- Drawee A financial company acts as an intermediary between the drawee and the payee.
- Payee (Payee) The person or group designated to receive the money listed on the check.
How many types of checks are there?
There are many types of checks, out of which mainly four types of checks are mostly used, Bearer Cheque, Account Payee Cheque, Crossed Cheque, Order Cheque.
1. Bearer Cheque
Bearer check is used for normal transactions. This check can also be paid from the cash counter.
2. Account Payee
When a person writes A/c Payee in the middle of the diagonal lines in the upper corner of the cheque, it is called Account Payee Cheque. It is considered quite safe to pay any amount.
3. Crossed Cheque
Two parallel lines are drawn above this cheque. This check is not used for normal transactions. This check can be paid from one account to another only.
4. Order Check
This check can be paid only with the signature and ID number of the consumer. An order check is issued when a person gives a check to or to the order of a particular person.
What are the components included in a cheque?
- Account Number: The account number is written on the check to make the payment.
- Payee Information: Make sure you have entered the payee’s name correctly here.
- Date Box: Complete this box with the day, month, and year.
- Amount Box: The drawer has to enter the amount in words and figures.
- Signature: The drawer has to sign the check correctly in the space provided.
- Check Number: Every check has a unique check number and a MICR code.
- IFSC Code: It is a special 11 digit code made up of combination of letters and numbers.
How to fill Bank Check (Bank Check Kaise Bhare)
- The method of filling the check book of any bank is almost the same.
- Enter the date on the date option at the top.
- In the PAY option, write the name of the person to whom you want to pay.
- Enter the amount to be transferred in the Rupees option.
- You have to write the transfer amount in words and figures.
- In the end, you have to sign above Signature or Authorized.
- Keep in mind here you have to sign the same which is in your bank account.
- Keep in mind that the name of the person whose name you have written should be the same in the bank.
Bank Check FAQ
When is the check effective?
In India, it takes three working days for a check to clear after it is deposited into a specific credit union account. However, this time limit can be extended in certain circumstances. You will not be able to withdraw the check amount until the check clears.
What is written on the back of the cheque?
Your account numbers are written on the back of the filled out check along with your signature.
How many days is the validity of the cheque?
Dated bank checks are valid only for three months. These have to be deposited in the bank account within three months from the date of issue, failing which they cannot be encashed.
How to pay by check?
After depositing the check in the bank, the bank will contact the issuing bank of the check and verify the complete details of the account. If the amount of the check issued is available in that account, the same will be transferred to the account of the check payee.
What is the benefit of cheque?
By issuing a cheque, you have the security of payment as the complete details are with the bank and there is no possibility of any kind of fraud related to the payment with you. If you issue a cheque, you can also produce the issued check as payment transaction evidence while paying income tax or other taxes.
When can a bank refuse to honor a cheque?
If the details filled in the check are wrong, Payee name does not match with the account, Check is mutilated, Check is mutilated, Wrong account number is written in the check, Check is not dated If the drawer of the check cancels the check, then the bank can refuse to honor the amount of the cheque.
Why do we sign on the back of the cheque?
To match the signature present in the bank account, the bank asks to sign the back of the check so that the bank can transact money completely securely by matching these signatures with the bank account.
How many numbers are there in a check book?
The 23 digit numbers at the bottom of the check are very special. In this, every 6 digits have some meaning. The first 6 digits are called the check number, the next 9 digits are the MICR code, the next 6 digits are the bank account number, and the last 2 digits are the transaction ID.
Can you cash a check after 6 months?
If the date of issue is not written on the check then you can issue it anytime but if you write the date on the check and it is more than 3 months then the bank can dishonor the cheque.
How to write check number?
The 23 digit numbers at the bottom of the check are very special. The first 6 digits are called the check number, the next 9 digits are the MICR code, the next 6 digits are the bank account number and the last 2 digits are the transaction ID. Out of these 23, the first 6 digit numbers are your check number, you can write them as a record.
Who issues the cheque?
There are three parties involved in a check transaction. The payee (drawer) is the person or organization that issues the check, the payee (drawee) is the financial institution, and the payee (payee) is the person or organization that receives the check.
How much does it cost to make a bank cheque?
It costs from ₹ 50 to ₹ 1000 to make a bank check book.
Can I deposit a check at any branch?
A check can be deposited and money can be received at any bank branch located in any part of India, provided the issuer and the payee have accounts with the same bank.
What is the maximum check amount?
There is no maximum limit for issuing cheques. You can issue a check of any amount as per your convenience.