Cheque it Out!!!

A simple cheque can sometimes leave us perplexed. We have also faced the embarrassment of our cheque bouncing because we made an error while writing it. When we open a bank account, we take our familiarity with the cheque for granted. Perhaps a checklist is in order?

Ø Forger Forger: Forger's specialise in both simple and complex signatures. We may not be able to control where our signatures lie for forgers to practice, but we can control where our cheques lie. It makes sense to guard against misuse by keeping our chequebooks safe. Counting the leaves when we get our chequebooks and keeping the book under lock and key will guard our cheques and our bank balance.
Ø Spaced out: Cheque writing is a science, though not rocket science. There should be no blank space for someone else to make any additions. It takes only a few zeros to change the amount dramatically. It is a good practise to fill in carefully, leaving no space before the start of our lines or the amount, and to draw a line across the space left after the entry is complete. A safe cheque has lines drawn and unsafe cheques have spaces.
Ø Blank trap: Never sign a blank cheque. Even if we give it to some one we trust, there is the possibility that they may loose it. Your signature should always be the last entry on the cheque after everything else is filled up.
Ø Always crossed: At the top left corner of the cheque, we draw two parallel lines. When we do this we tell the banker that the amount should be paid only into a bank account and not as cash across the counter. A crossed cheque makes it easy to track any wrong payment to an unintended beneficiary.
Ø Disable the bearer: The word bearer means that the amount can be paid to the person who presents the cheque to our bank. Always strike out the words ‘or bearer’ and cross the cheque so that it is cashed only by the one it was meant for.
Ø Samples, please! There are transactions where we are asked to attach a sample blank cheque. Typically this happens when we give payment instructions for bills, EMIs or systematic investment plans (SIPs). The blank cheque is used to verify the specified bank account number, branch and such details. Cancel the cheque by drawing thick dark lines across the body of the cheque and writing the word “CANCELLED” across it so that it cannot be used. Never sign such a cheque.
Ø Corrections galore: It is common to make errors while writing a cheque. Going by the rule book, we need to sign and attest every such change.
Ø Out of bounds: The band at the bottom of the cheque contains important numbers that enable collection of the cheque amount. The codes there are read by machines. Leave that space untouched. Don’t write any thing there.
Ø Lost and not found! If you do not receive a new chequebook within a reasonable time from registering a request, inform your bank because it could have landed in the wrong hands. If it happens that a cheque leaf is missing, report it to your bank immediately or call their customer care number and issue a “stop payment” instruction.
If you decide to close your bank account, destroy or return to the bank, the unused cheque leaves left with you. Cheque writing is a simple affair. Knowing the basics can help us imbibe best practices and guard against misuse and fraud.