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Issuing A Cheque? Things You Should Know


Using technology to access banking services, is an easy task and less time consuming unlike earlier where standing in que for most of the transactions was mandatory.

An increase in NEFT, RTGS, and other online transactions have reduced the old methods of banking.

But, even now some of the financial transactions demand issue of cheque, such as where individuals need to submit post-dated cheque.

Points To Remember While Issuing Or Writing A Cheque


Here are few things to know before issuing a cheque:

1) Account Balance

Make sure you have sufficient account balance when cheque hits your account. Also, maintain minimum balance after your cheque is cleared. Or else the bank will deduct some amount if there is no minimum balance maintained in the account.

2) Right name of the payee

Before writing a cheque confirm the name and spelling of the payee to whom you want to issue a cheque. If you have the account number, better to add next to his name such as Ashok Raman A/c 012356. Banks have the right to dishonor a cheque if there is a discrepancy.

3) Make use of A/c payee

By crossing it twice with two parallel lines on the left-hand top corner and writing account payee will transfer amount to a particular person's bank account only.

4) Cheque date

Cheque once issued will be valid for 3 months only. Post dated cheques is when a date on the cheque is for a future date of payment. The post-dated cheque is not payable till the date which is mentioned on the cheque. On that particular date, it is called a cheque.

5) Credit score

Yes, if the cheque is bounced there can be a negative impact on your credit score. Make sure that your cheque is honoured under all circumstances.

6) Lost cheques

In case, if you have lost or misplaced a few cheques it is better to inform the same to the bank and give the stop payment of cheque by providing a cheque number.

7) Higher amount

Cheques above the limit of Rs 2 lakh will be examined under the ultraviolet lamp and cheques above Rs.5 lakh will have to go through multiple security checks.

Read more about: cheque banking
Story first published: Monday, April 11, 2016, 12:05 [IST]
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