In today’s digital world, online banking has become the preferred choice for many due to its convenience. Still, cheques remain essential in certain situations, such as paying rent, making a security deposit, or settling school or college fees. They also offer a reliable and transparent way to handle transactions during emergencies, such as paying medical bills.
Given their continued relevance, writing a cheque correctly becomes an essential life skill, as even a single error can render it void. In this blog, we’ll guide you through the steps on how to fill cheque for yourself or another person, and how to avoid some common mistakes.
As per Section 6 of the Negotiable Instruments Act, 1881, a cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand, and it includes the electronic image of a truncated cheque and a cheque in the electronic form.
In simple terms, a cheque refers to a financial instrument that contains an unconditional order to the bank to pay a certain sum mentioned in the instrument, from the drawer’s account to the person it is issued to, or to the order of the specified person or the bearer.
Drawer: The individual who writes and signs the cheque, instructing the bank to pay the specified amount.
Drawee: The bank from which the cheque is drawn, responsible for paying the stated sum to the payee.
Payee: The recipient, i.e., the person to whom the funds are to be credited.
Account Number: A set of 11 to 17 digits, located on the left side of the cheque, is a unique identifier for your bank account, ensuring that payments are made to the correct account.
Date: The date (DD/MM/YYYY) on the top right shows when the cheque was issued. It helps check validity, as cheques older than three months become invalid.
Payee: The recipient of a cheque is referred to as the payee, which can be either an individual or an organisation. You must write the payee's name in the ‘Pay’ section of the cheque.
Amount: The amount is written twice: once in numeric form (in the box on the right) and once in words (below the payee's name).
Signature: The drawer must sign the cheque, and the signature should match the bank's records.
IFSC: The Indian Financial System Code (IFSC) is a unique 11-character alphanumeric code. The first four characters denote the bank code, the fifth is always "0," and the final six specify the branch code.
Cheque Number: A cheque number is a unique identification number printed at the bottom left corner of the cheque leaf.
Write the date: Begin by entering the date at the top-right corner of the cheque using DD/MM/YYYY format.
Mention the payee's name: Just below the date, on the left side under 'Pay,' write “Self.” You can also write your full name as registered with your bank.
Enter the amount in numbers: Write the amount you wish to withdraw or transfer in numerical form in the box next to the ‘₹’ symbol, using the format: “10,000/-”.
Write the amount in words: For instance, if you have mentioned ₹10,000 in words, then write “Ten Thousand Only” next to the word ‘Rupees/Rs’ below the payee’s name.
Sign the cheque: Sign the cheque in the bottom-right corner using the same signature you have registered with your bank to confirm your authorisation.
Submit the cheque to the bank: After filling out the cheque, take it to your bank branch and hand it to the cashier to process the withdrawal or transfer.
Note: When writing a self-cheque, you can either withdraw cash or transfer the money from one account to another within the same bank. To transfer money into another account you hold, draw two parallel lines on the top-left corner, write "A/C Payee Only" between them, and deposit the cheque at the bank with a filled deposit slip.
Mark the cheque as Account Payee Only (APO): On the top-left corner of the cheque, draw two parallel lines on the top-left corner and write “APO” between them.
Write the date: Enter the date in the top-right corner of the cheque. You can use either the current date or a future one, formatted as DD/MM/YYYY.
Enter the payee’s name: On the line labeled ‘Pay’, write the full name of the individual or organisation receiving the payment. Make sure it matches their official bank records to prevent any potential issues, and strike out the word ‘Bearer.’
Fill in the amount in figures: Write the amount you want to withdraw or transfer in numerical form in the box beside the ‘₹’ symbol, using the format: “10,000/-”.
Write the amount in words: Write the amount in words below the payee's name. For example, if the amount is ₹10,000, write "Ten Thousand Only" alongside the term 'Rupees' or 'Rs.'
Sign the cheque: The bottom-right corner has a section for the drawer’s signature to authorise the payment.
Submit the cheque to the bank: Fill out the cheque and take it to your bank branch to hand it to the cashier for processing.
You might not write cheques often these days, but they remain a necessity to have for emergencies or times when digital payments just aren’t an option. Writing a cheque, whether for yourself or someone else, requires your attention before you hand it over or deposit it. While it may seem like a small task, correctly filling out a cheque reflects financial responsibility and can be invaluable when you need it most.
Cancel the cheque by writing “cancelled” across it and issue a new one.
An account payee cheque is a cheque that can only be deposited into the account of the payee. It is marked with two parallel lines on the top-left corner with "Account Payee Only" or "A/C Payee Only" written between them.
As per the Reserve Bank of India (RBI), a cheque is valid for 3 months from the date it is issued. After 3 months, the cheque is considered stale and the bank is not obligated to honor it.
No, a self-cheque can only be cashed at the bank where the account holder has an account.
If your signature doesn’t match or is unclear on the cheque, the bank will declare it void.
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