How to prepare cancelled cheque

To prepare a cancelled cheque, follow these steps:

• Take a fresh cheque leaf from your chequebook.
• Draw two parallel diagonal lines across the cheque.
• Write the word CANCELLED in capital letters between these two lines.
• Ensure that you do not sign the cheque or write any other details like the date, payee name, or amount.

A cancelled cheque is used as proof of holding a bank account and contains essential details like your account number, IFSC code, and branch name. Always ensure the lines do not obscure the MICR or account numbers.