What is the use of cancelled cheque

A cancelled cheque is used as a secure document to verify your bank account details without allowing any monetary transactions. It provides essential information like your account number, IFSC code, MICR code, and branch details. Common uses include:

• Completing KYC formalities for investments in mutual funds or the stock market.
• Setting up Electronic Clearing Service (ECS) or NACH mandates for EMI payments and utility bills.
• Processing loan applications and insurance claims.
• Verifying bank accounts for salary credits during employee onboarding.
• Facilitating EPF withdrawals and receiving government subsidies via Direct Benefit Transfer.