Cheques are counted among the most popular and traditional banking instruments in India. With the advent of technology, transactions can now be made online just by clicking a few buttons. However, the use of cheques is still quite popular among those who are suspicious of online methods or those who do not find it comfortable. Cancelled cheques are used by everyone as a proof of holding that particular bank account.
What is a cancelled cheque?
A cheque is called ‘cancelled cheque’ when two lines are drawn across it and the word “cancelled’ is written between the two lines. This cheque cannot be used to withdraw money as the words explicitly mean that it has been cancelled.
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How to cancel a cheque?
To cancel a cheque, you just need to strike two lines across the cheque and write the word “Cancelled” across it. You don’t need to sign the cancelled cheque. It only works as a proof that you have an account in the bank. There is the account holder’s name, branch name and address, account number and MICR Code on the cheque which is enough to submit it as a proof.