6 dumb mistakes which you make while writing Cheque’s – Dont do it !

One of the most common ways to pay money to someone is through cheque’s. Cheque’s give you the flexibility to make payments to someone at some later date (post dated cheque) by writing it now at this moment. Writing a cheque seems to be such a simple task, but do you know that there are many weak links in writing cheques which can create a big problem for you.

If you are not careful while writing a cheque, it can be misused by someone else and potential of monitory loss to you along with unwanted headache. Today’s generation is very causal when it comes to writing  the cheques. In this article, I will cover 6 must know points which you should always practice writing the cheque’s . You can see these 6 points as a step by step recipe to write cheques. Lets see them one by one

1. Do not leave spaces between words or numbers

Its a no-brainier. When you write numbers and words in the cheque, be it Name or amount, never leave a space or gaps between them, because that gives a chance to add some alphabet or number and change the whole cheque.

Imagine you issue a cheque to “ANKIT SHARMA” , but put sufficient space between “ANKIT” and “SHARMA” and it looks like “ANKIT    SHARMA” . One can add an additional “A” after “ANKIT” and the name can become “ANKITA SHARMA” . However if you just leave exact one small space between “ANKIT” and “SHARMA” , its going to be tough to add another alphabet in between.

Dont leave space or gap while writing cheque

2. Make sure you cross the cheque saying “A/C Payee” 

If you are going to pay to some person and want to force that the payment should go to the same person bank account, in that case, you should be putting a double cross line on the left-top corner of cheque and write “A/C Payee” or “Account Payee“, which ensures that the money will get credited only to a bank account and not be handed over to someone as CASH over the counter.

Add AC/Payee on top left corner while writing cheque

A lot of people forget to do this, and if the cheque is misplaced or lost, someone can pose himself as the target person and take the money from bank, I hope you know how easy it is to steal someone’s identity and misuse the documents.

3. Add a line after the name and amount till the end 

I recently learned this point, where you add a running line like —————————- after the name and the amount in the cheque, which ensures that one cant add anything after the name and amount and misuse it .

add running line after name amount in cheque

4. Cancel the word “Bearer”

If you look at your cheque closely, in the “Pay” section, there is space for the name and then on the right corner it ends with “Or Bearer” , which means that either the person whose name is written in the cheque or anyone else who is bearing the cheque can encash it , provided the “A/C Payee” is added to cheque as mentioned in 2nd point above. So you should always cancel the word “Bearer” from the cheque, unless you really want it. This ensures additional safety of the cheque.

5. Add a sign of “/-” after the amount”

Now this might sound so small, but this has lots of wisdom inside this simple trick . There is huge difference between Rs 37,000 and Rs 37,000/- . In first option of Rs 37,000 , you can add more numbers at the end and can make it Rs 37,00000 if there is enough space ahead of it, but in case of Rs 37,000/- , You cant do anything . Below is a simple example of how it can be misused.

Corrent way of writing amounts on cheque

6. Keep the details of Cheque’s issued, even if it sounds boring !

And finally, when you give a cheque to someone, write down the cheque number, account name, amount and the date when it was issued or dated, because you might need this information incase you want to cancel the cheque. A lot of times, it happens that you need to cancel the payment, but do not remember the details. Having recorded this information would be handy at times and will help you to act faster.

ICICI Bank also has a small tutorial on correct way of writing cheque’s, which I have added below, just have a look at it and you should understand most of the things.

Some more tips (From Readers Inputs in Comments section)

  • Rishi Bhatia says – “Generally, while giving a cheque, i also make a point to use a cello tape on the name and amount, so that no one can change these”
  • Jitendra says – “In the present era of mobile phones, when most of us have camera enabled cell phone, it is better idea to get a snapshot of Cheque before handing over. This way all your details will be maintained.”

Use these 6 things everytime you issue a cheque

Next time you write a cheque, just make sure you have done all these 6 things, and the chances of misuse of your cheque will be close to ZERO because each and every step add a security layer. Let me know if you have any tips on writing cheque  in correct manner or any real life experience on this issue.

 

71 CommentsAdd Comment

  1. robinson

    7,736/- but i wrote ‘seven thousand seven hundrend thirty six’ will the cheque be dishonored?

  2. Heerak

    Sir, i want to write a cheque amounting Rs 1,000/- then can i write the amount in words as “one zero zero zero only”. Please reply.

  3. [email protected]

    The article is very good, thank you very much!

  4. Aashish Pathak

    I always put up an extra signature on the back side of the cheque drawn. Is it ok to pust such a signature on backside of the cheque ?

    This article is indeed very good and informative.

    Thanks.

  5. vikash

    Dear manish awesome post…one more thing I want to clarify. …like if I have crossed the cheque and written “AC Payee” on the corner and leave the “or bearer” side on the other side…will there be any issue like can the bearer also deposit the money in his account

  6. Satish

    I always write my cell no below my signatures but above the white strip. In case you lose the cheque, some samaritan can contact you and also the bank can contact you on your present number in case there is any problem in passing the cheque,say difference in signatures or any other mistake.

  7. This was an amazing tips for all the new check users , i was also one of the victim who lost 5o thousand when i have written as 5 thousand but finally i got my money back after lot of follow up and lot of time was . so pleas follow it .

  8. p.b. lakshman

    Good Information. As an accountant I have caught one of my staff misusing a cheque by inserting additional alphabet because of more space
    in between the name …………lakshman

  9. Valid points, but it is surprising how many of us do not follow these. I guess writing cheques are taken for granted and often ignored. Also to record the cheque details, the cheque book often has the counterfoil or slips at the end of the cheque books, filling that will be sufficient record of the cheques.

    Slightly off topic, the other practice is to sign twice, it only makes sure that the cheque is not dishonored due to mistake in signature… have seen it often on cheques.

  10. Mahesh A

    Dear Manish,

    Here is one more foolproof way of writing a cheque & ensuring that it goes to the right a/c & person. Write the name of the Bank, complete A/c no & name on the Pay line: for e.g. PAY Bank of Baroda SB A/c 000123456789123 Manish Chauhan. Most of the time, this is sufficient.

    More Tips:
    1. You can also cross the cheque A/c Payee & Not Negotiable.
    2. If the cheque is for large amounts, you can also write “Not over Rs.______.”
    E.g. if the cheque amount is, say, 100,000/- , you may write “Not over Rs.100,000/-” This is generally done in commercial transactions. But there is no reason why individuals cannot do the same.
    3. Use a reverse carbon. That is, beneath the cheque leaf, place a carbon sheet, reverse side up, before writing the cheque. Whatever you write, shows up as a mirror image on the reverse of the cheque. Helps to identify any tampering.

    Hope this helps

    Best Regards

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