How to Write a Cheque- a Step by Step Guide to Follow

Cheques are financial instruments that allow users to make transactions securely. These cheques, when not written properly can get dismissed or dishonoured by the bank. Any kind of default or overwriting issue in the cheque can make its processing difficult.

Thus, to handle a cheque decently, you must know everything about a cheque- its parts, parties involved and how to write it.

What are the Parties involved in Cheque Transactions?

There are three parties involved in cheque based transactions-

  • Drawer– A person who issues or writes the cheque
  • Drawee– It is a financial institution that connects drawer and payee
  • Payee– A person or an institution who will receive the amount written on the cheque
Read More: 4 Ways to Apply for a Cheque Book Easily

What are the Parts of a Cheque?

  • Bank’s information– The cheque carries the name of the bank and its address
  • IFSC– It is a unique 11-digit code, which is a combination of numerals and alphabets
  • Payee information– This is where the payee’s name has to be mentioned properly
  • Date box– This box needs to be filled with date, month and year
  • Rupees– It is where the drawer needs to write the amount in words
  • Account Number– One needs to write the account number for processing the payment
  • Signature– The drawer must sign the cheque properly in the given space for signature. Most bank cheques, these days, are printed with the drawer’s name, above which his/her signature is required
  • Amount to be transferred– There are cheques in which the maximum amount to be drawn is mentioned clearly
  • Cheque number– Every cheque has its own cheque number along with the MICR code.
  • Amount– The box where the drawer must write the amount to be transferred in numbers

Here’s how a cheque looks like-

How to Write a Cheque?

A cheque is basically written into two parts-

  1. Writing the cheque
  2. Recording the payment

Part 1- Write the Cheque

A cheque can get dishonoured or rejected by the bank if it is not written properly, thus, it is important to mention all the details in the cheque clearly. Follow these common steps to write a cheque-

  • Write the date at the top right-hand corner of the cheque in the format of “DD/MM/YYYY”. You can create a post-dated cheque too as per the requirement
  • Next, you need to write down the name of the ‘Payee’. A payee can be an individual or an institution. Make sure to write the name accurately
  • Now, write down the amount in words in the space meant for ‘Rupees’. Write the amount from the very left side of the space and don’t forget to write ‘only’ after writing the full amount. This way you will protect the cheque from any misuse. For example- if the amount is 4004, write it like “Four thousand and four only”
  • Once done with writing the amount in words, you should now write the same amount in numerals in the box provided on the right side of the cheque. Write the amount in the given manner “4004/-“
  • Sign the cheque. Use the same signature which you have used for other banking formalities. Wrong/mismatched signatures result in the cancellation of the cheque or can be proven invalid
Read More: Cancelled Cheque - What is a Cancelled Cheque | How to Write, Example & Purpose

Part 2- Record the payment

It is advised to record all the details of the drawn cheque as it helps in identifying how much amount has been paid to the payee, and how many numbers of cheques have been issued. This way you will never lose track of the details of the cheques that you have drawn. To do so, keep a few things in mind when recording the cheque details-

  • Fill in all the cheque details in your cheque register book
  • Write the cheque number, the date on which the cheque is written/issued and the amount
  • A quick description of the payee

In case you don’t have a cheque register book, make use of a spreadsheet to record the information.

Things to Keep in Mind when Writing a Cheque

Now that you know how to write a cheque, there are still some points left that you should consider when writing a cheque. Here are some-

  • Avoid leaving too many spaces between the words
  • Always write “only” after writing the amount in words
  • Do not overwrite
  • Don’t sign on MICR band
  • Write the correct date in the format mentioned on the cheque
  • Keep a record of your cheques
  • Never hand over the cheque with only a signature
  • Always add payee name, date, amount and other details to avoid any misuse of the cheque
  • For making bill payment, always write the mobile number, connection number and other details on the backside of the cheque
  • Keep your signature consistent, do not use different signatures for signing the same series of cheques
  • Ensure all the spellings that you have written are correct
  • Double check your cheque before submitting the same to the bank
  • In case there is an error in the cheque, write “void” and start writing a fresh new cheque
  • Make use of only a blue or a black ballpoint pen or pen that does not leak ink. Do not use a colourful pen to write a cheque
Read More: All You Need to know about Cheques

What is IFSC and is it available on the cheque?
An IFSC is a unique 11 digit alphanumeric code that identifies the specific bank branch. An IFSC code is written on the cheque to identify the bank’s branch while making the process of transaction smooth and error-free.
What is a cheque number?
A 6-digit cheque number is printed on every cheque leaf written at the bottom left-hand side of the cheque.
How much time does it take to clear a cheque?
Generally, it takes 2-3 working days for the cheque clearing process. Sometimes it depends upon the amount written on the cheque to get it cleared.
When can a bank stop the payment processing?
Below are many reasons for the bank to stop the payment processing-
  • Insufficient funds
  • Outdated cheque
  • Difference in Issuer’s signature
  • Overwritten cheques
  • Details missed in the cheque
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