Cheque payment Rules: Bank customers should keep these things in mind while making payment by cheque, otherwise they will be cheated heavily

Cheque Tips: Nowadays it is the digital age. Money can be easily sent by just scanning. In this era, many people still make payments through cheques. In such a situation, negligence with cheques in a hurry can lead to huge losses, so it is very important to keep some things in mind

Cheque Tips: Digital is prevalent in India. Now most people in the country have started using digital payments. But even today many people use cheques for big transactions. In such a situation, it is very important to keep many things in mind while issuing a cheque. Even a small mistake can lead to huge losses.

Negligence with cheques in a hurry can prove to be costly. Cheques are powerful financial instruments through which money transactions are facilitated. Before signing any cheque, you should know who the person to whom you are giving the cheque is and what is its purpose?

A signed cheque can be misused at any time. Sometimes money is withdrawn by filling the amount in it. This can cause you to suffer huge financial losses. However, there are many such small things which can be kept in mind to avoid unnecessary difficulties.

Keep these things in mind before signing a cheque

Always write the correct date on the cheque

When issuing a cheque, the date should be correct. The date should match the day on which you are issuing it. This is most important. It saves you from a lot of confusion. It tells you when the cheque can be encashed. Entering the wrong date can also lead to the cheque being rejected by the bank. Apart from this, it is also very important for maintaining accurate financial records.

Use permanent ink in the cheque

Permanent ink should be used to avoid tampering with the cheque. So that it cannot be changed later by cutting and pasting. This can also save you from fraud.

Keep sufficient balance in the account

If the cheque bounces, you may have to go to jail along with a fine. Cheque bouncing is considered a legal offence in the language of the court. There is also a provision for punishment under the Negotiable Instruments Act, 1881. When a bank rejects a cheque for some reason and payment is not made, it is called cheque bouncing. The reason for this is mostly not having sufficient account balance. It is very important to have sufficient money in your account at the time of issuing the cheque.

Always write the name correctly on the cheque

Write the name of the person to whom you are issuing the cheque in clear words. A correctly written name will ensure that the cheque reaches the right place. Mistakes in writing the name can lead to delay in clearing the cheque. It can also be rejected by the bank.

Pay attention to the signature while issuing the cheque

Whenever you sign a bank cheque, remember that you have to sign in the same way as it is already recorded in the records of the concerned bank branch. Many people keep different signatures for different banks. If you have also done this, then be careful while signing the bank cheque.

Do not keep too much space between words and numbers in the cheque

Whenever you make payment to someone by cheque, do not keep too much space between words and numbers regarding name and amount. Too much space can increase the chances of tampering with the name and amount. Apart from this, check that the amount filled in words is the same as the amount filled in figures. Banks will accept the cheque only if the amount matches in both the ways, otherwise the cheque will be rejected.

Never sign a cheque and give it to anyone

Never issue a blank cheque to anyone, no matter how trustworthy the person is. The reason for this is that any amount can be filled in it. If the relationship deteriorates or the other person changes his mind, he can empty your entire bank account.

Keep the cheque details with you

Whenever you make payment to someone through a bank cheque, note down the details of that cheque such as cheque number, account name, amount and date. This information can be useful when you need to cancel the cheque. Apart from this, you also get to know whether any cheque has been misplaced or whether someone has taken a cheque from the cheque book without your knowledge.

The post Cheque payment Rules: Bank customers should keep these things in mind while making payment by cheque, otherwise they will be cheated heavily first appeared on informalnewz.

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