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When one writes a cheque one needs to fill in following details

  1. Name of person/company to which one is paying from one’s account. This is how the bank knows who to give the money to. The person named in the cheque, to whom the money would be paid, is called the ‘payee.’
  2. Date of issue is the date from which the cheque becomes valid. It is the date from which the cheque maker wishes the cheque to be
    used for withdrawing money from his account. A cheque is valid for three months from the date of issue.  From April 1, 2012, RBI reduced validity for Cheques, Drafts, Pay orders from 6 months to 3 months
  3. The amount in Figures is the amount of money one is promising to pay in numbers or figures. It has to be an amount less than or equal to the balance in the account.
  4. The amount in Words is the amount of money one is promising to pay in words. This is for safety so that no one can change the amount one is promising to pay. It has to be the amount less than the balance in the account. It should match the amount in figure
  5. Signature of the account holder. A cheque becomes valid only when the account holder signs it. Signature is checked against the records before a cheque can be passed. One’s signature is an indication for the bank that it is ok to give the money promised by the cheque maker. The maker of a cheque is called the ‘drawer.’

Write a cheque

Siddhant has to write a cheque to Pay Rs 10,000 to Aryan Kumar on 25/Oct/2018

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To know about what is a cheque? Details on a cheque leaf, Kinds of cheques, clearing of the cheque. How to write a cheque? Has cheque usage gone down? you can read our article about Cheques here.


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