Issuance of cheque to make payment is many a times favoured against cash payment as the same is advantageous in several ways. First, payment by cheque to someone concerned gets recorded in one's bank account statement by default.
Also, post-dated cheques, issued today enable payment at a later date. However, while issuing a cheque one must take heed of some of the aspects else one may have to bear monetary loss together with other hassles.
1. Ensure crossing of the cheque using A/c Payee : Where the payment has to be credited to an individual's bank account, always remember to cross the cheque by forming a double cross line on the left-top area of the cheque and write A/c payee. The method ensures credit of money into the account. You should also cancel the word bearer towards the end of the PAY column such that the amount gets credited only into the account number specified and in no way is handed over to the bearer of the cheque.
2. Suffix the amount for which the cheque is drawn with "/-" : To prevent misuse, always add "/-" sign after mentioning the amount as then there is less scope left for changing the cheque amount. For instance, Rs. 35,000 should be quoted as Rs. 35,000/-
3. Reduce the chances of misuse by leaving no gaps between the name as well as figure : Leave no gaps while mentioning the first name and last name on the cheque as otherwise it can be easily manipulated. With just a single space between the first name and last name, chances of effecting changes on the cheque can be greatly lowered.
4. Add a running line after the name and amount on the cheque to avoid misuse: The drawn cheque can also be protected by putting a cello tape on the name and amount
5. Maintain and record issued cheque details : Keep a record of all relevant details of the drawn cheque including cheque number, date of cheque issuance, amount, name of the person on
whose name the cheque is drawn plus his/her account number for reference in future course of time. Also, the same can come in handy if you want to cancel the cheque.