Should we sign on cancelled cheque

No, you should not sign a cancelled cheque. Its primary purpose is to verify your bank account details, such as the account number, IFSC, and MICR code, without any risk of a financial transaction. Signing it is unnecessary and can potentially lead to misuse or fraud if the cheque falls into the wrong hands. To correctly cancel a cheque, follow these steps:

• Draw two parallel diagonal lines across the cheque leaf.
• Write the word CANCELLED in capital letters between these lines.
• Ensure the bank details remain clearly visible and do not provide any other information.