Do we have to sign on cancelled cheque

No, you do not have to sign a cancelled cheque. Its primary purpose is to verify your bank account details, such as the account number, IFSC, and MICR code, rather than to authorize a payment. In fact, experts generally advise against signing it to prevent potential misuse or fraud. To correctly cancel a cheque, you should:

• Draw two parallel diagonal lines across the cheque leaf.
• Write the word CANCELLED in capital letters between these lines.
• Ensure all vital account information remains clearly visible.