Do we need to sign on cancelled cheque

No, you do not need to sign a cancelled cheque. In fact, it is highly recommended and standard practice to avoid signing it. A cancelled cheque is primarily used for verification purposes, such as confirming your account number, IFSC, and MICR code. Signing a cancelled cheque can increase the risk of misuse or forgery, as it provides a sample of your authentic signature along with your banking details. To properly cancel a cheque, simply draw two parallel diagonal lines across the leaf and write the word CANCELLED in capital letters between them.