Legal Question in Banking Law in India

How to write a cheque

precaution to be taken while writing a cheque

Asked on 12/07/08, 8:08 am

5 Answers from Attorneys

Homi Maratha N.N. Maratha & Co.-Advocates

Re: How to write a cheque

The first thing you should do is write in the date using any format with which you feel most comfortable. Just make sure that you write it legibly, so that there is no confusion as to when you wrote the cheque. If you want the recipient to have the money right away, put in the current date. If you want the recipient to withdraw the funds at a later date, write in a future date. This is called a post-dated cheque. Secondly, write the name of the person or organization that will receive your cheque on the line that is preceded by the words "Pay tothe Order of" or "Payable to." On the right hand side of the cheque,under the date line, there is also a wording that says 'or bearer'.

It pays to cross this out, as this wording would allow anyone to present the cheque other than the person you intend to pay. Remember that a cash cheque can be redeemed by the bearer, whether they are the person the cheque is intended for or not

Lastly, here are some further safety tips for the new chequebook user:

1.Never pre-sign blank cheques in your cheque book.

2.Keep your cheque book(s) in a safe place.

3.Always keep a record of the cheque amount, date, and payee in the section provided for this in your cheque book.

4.Reconcile your bank statement from time to time to ensure the cheques and amounts written by you match what appears on your statement

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Answered on 12/17/08, 5:18 am

Nasir Butt Nasir Law Associates

Re: How to write a cheque

Liability to pay, time to pay, date of cheque, amount in words and figures (amount in words is taken where there is difference in words and figures), signature as in bank, cross the cheuqe if desired, balance in your account, cheque must be from valid cheque book, arrangement of balance in accounts till six months, name the payee etc. These are some precautions which may be taken before you issue the cheque.

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Answered on 12/08/08, 3:43 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: How to write a cheque

Date,sign, A/c payee(Cross),amount in words and figures and payee's name should be proper

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Answered on 12/09/08, 7:54 am
J. Radhakrishnan independent Practice

Re: How to write a cheque

Be clear to whom and what purpose u r writing the cheque. Always keep the cheque book in proper custody. Don't keep blank signed cheques. In issuing a cheque for whatever purpose and to whomsoever you intend to do, first, check whether you have and will have adequate balance in your account to honour the cheque when presented. Write with one pen the name of the payee, date, and amount in figures and words and sign it in you usual manner. Cross the cheque with account payee if the amount is to be received by the payee by collection thru his account and in every case if it is over Rs.2500/- unless used for drawing cash by yourself to be presented by you personally or by your trusted agent. Always better strike out the word "or bearer" after the name of the blank to ensure that it is to be collected by the payee or his endorsee. After completing the cheque, ensure that all things therein are O.K including the amount in words and figures are the same. Eternal vigilance is the price of democracy.

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Answered on 12/08/08, 8:17 am
Sudershan Goel Sudershan Goel - Advocate, International Visiting Scholar, USA [2008-10]

Re: How to write a cheque

You may better be careful about the amount and be sure about your liability towards the payee. Of course you should made adequate arrangements with your bank to clear the check.

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Answered on 12/07/08, 5:18 pm

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