Does cancelled cheque need to be signed

No, a cancelled cheque does not need to be signed. In fact, it is recommended not to sign it to prevent potential misuse. A cancelled cheque is primarily used as a document for bank account verification and KYC purposes, rather than a payment instrument. To correctly cancel a cheque, you should:

• Take a fresh, unused cheque leaf.
• Draw two parallel diagonal lines across the cheque.
• Write the word CANCELLED in capital letters between these two lines.
• Ensure essential details like the account number, IFSC, and MICR code remain clearly visible.