What is a canceled check and its utility? : Friends, as you know that our country India is a young country. Today’s youth country online digitalization In the era where on the one hand a huge population of India used to do money transactions. ATM, UPI, Net Banking, On the other hand, many people in the country still use checks for money transactions. (Check) is done by. Friends, in today’s article we will tell you Canceled Check going to tell about. In today’s article you Canceled a check and its utility Where do we have to pay the Canceled Check? Will provide information about all these. To know, read our article carefully till the end.
What is a Canceled Check?
First of all, you should know what is called a canceled check, friends, here we will tell you that whenever a blank check (Blank Check) But by drawing two diagonally parallel lines Canceled If it is written then that check is canceled (Cancelled Check) is called. A canceled check is called a canceled or canceled check in Hindi.
Points to be kept in mind while preparing and issuing a canceled check
You should keep the following points in mind while preparing a canceled cheque. Failure to take care of your cancellation check-related procedures can get interrupted. What are the things that you should pay attention to while making a cancellation check, let’s know-
- Always use a blue and black ink pen while drawing a canceled check, If the pen is a ballpoint dot pen it is even better. This will facilitate making checks and the check will also remain clean. While drawing a canceled cheque, keep in mind that the signature to be made on the check should be either blue or black in any one ink. The bank can cancel or cancel your canceled cheque if you use two-color ink in the signature.
- It is not mandatory to sign the Cancel Check – Let us tell you that it is not necessary for the customer to sign the canceled check because many times it has been seen that due to the signature, many cases of bank fraud have come to the fore. Hence the bank has now removed the requirement for a signature on the canceled cheque.
What information is written in a canceled cheque?
Whenever a bank customer Cancels When a check is issued, the following information is entered in that canceled check, this information is as follows.
- Name of bank customer or account holder (Name of Account Holder)
- customer’s bank account number (Bank Account Number)
- Bank branch name of the account holder (Bank Branch Name)
- Bank IFSC Code
- MICR (Magnetic Ink Character Recognition) Code
Where is the Cancel Check requested?
A canceled check is asked by the concerned institution at the time of application of the following procedures by a bank account holder, we have told you about some here –
- Whenever you buy an insurance policy from an insurance company. So the canceled check is asked from you by the insurance company.
- If a person whose PF is deducted, if he wants to withdraw money from his PF account, then the person has to give a canceled check to the EPFO to authenticate his bank account.
- If a person has invested in a mutual fund of an investment company, then a canceled check is asked from the person by the mutual fund company.
- Let us tell you that whenever you register for the Electronic Clearance Service, you have to give a canceled check at the registration time.
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What is the difference between Blank Check and Canceled Check?
- Blank Check:- Friends, let us tell you that whenever you apply for a loan in any bank, the bank will give you a blank check. (Blank Check) is asked for. Friends, let us tell you that a blank check is a normal check in which the details of the account holder’s name, account number, IFSC code, MICR code, etc. are entered. Whenever you sign a simple blank check for a loan from the bank and give it to the bank officer, then that check is called a blank check, on which you do not have to write anything other than your signature.
- Why blank check is taken:- Friends, as you know that any bank provides a loan to any person after a thorough investigation. bank Blank Check There are three main reasons for taking which we have told you in a point-wise manner in the next article –
- the primary reason:- On receiving a blank cheque, first the signature on the check is matched by the bank officer. By matching the signatures by the officer, it is seen that the person applying for the loan is the one who has an account with the bank.
- Second reason:- Another reason for taking a blank check by the bank is that it shows in which bank the bank account of the person applying for the loan is.
- Third reason:- The third biggest reason is that the blanks are present in the check. IFSC (Indian Financial System Code) From the details of the loan, it is known in which bank branch the bank account of the person getting the loan is.
- Cancel Check:- Friends, as we have already told you above in the article that whenever a normal check is drawn by drawing two parallel lines diagonally, Canceled is written. So that check is called a canceled cheque. With this check, money cannot be withdrawn from the customer’s bank account.
Where is the use of canceled checks?
The utility of Cancel Check is for investment, payment, transactions in banking, etc. Here we are going to tell you about the areas related to the utility of Cancel Check –
- As KYC (Known Your Customer):- In order to check the correctness of the identity of the customer in the bank, the bank asks the customer to cancel the check. If you want to invest in the financial services of the bank like mutual funds, stock market, etc. then you have to deposit a canceled check in the bank.
- Demat Regarding the opening of account:- If you open a Demat Account, then a Cancel Check is asked by the bank to confirm your identity. The canceled check given by you is taken to see your bank details. Once your details are verified by the bank, your Demat account is opened. After opening a Demat account, you can invest in various investment schemes available in the market.
- for an insurance policy:- When a customer takes an insurance policy of an insurance company, the insurance companies demand a canceled check from the customer while taking the policy. To take any type of insurance policy, whether you are talking about health insurance, vehicle insurance or life insurance, the customer has to deposit a canceled check with the insurance company.
- Withdrawing money from EPF account:- If a person wants to withdraw money from his EPF account, then for this the person has to deposit a canceled check with the bank or EPFO. No person can withdraw money from his EPF account without depositing a canceled cheque.
How to make Cancel Check?
Creating a canceled check is a very easy process provided you have an account with a bank. To create a canceled cheque, you can follow the following procedure
- First of all, take your bank checkbook which is given to the customer by the bank in which the customer has a bank account.
- Open the bank checkbook and draw two diagonal parallel lines on a blank cheque with a Blue Dot pen.
- After drawing two diagonally parallel lines, write Cancelled in the middle.
- In this way, your cancellation check will be ready.
FAQs on canceled checks and their usefulness
What is CANCEL check?
When a normal blank check is written by drawing two parallel diagonal lines in the middle, it is called a canceled cheque.
What is the MICR code in check?
Magnetic Ink Character Recognition Code (MICR) is a 9-digit identification number written on a cheque. From this number, it can be ascertained in whose name the check was issued, to whom the check was given, and who the person/institution issued the check.
What is the full form of the IFSC Code?
The full form of the IFSC Code is the Indian Financial System Code. Which gives us information about the branch of the bank. Each bank branch has its own separate IFSC Code.
What are the types of checks?
Let us tell you that there are mainly three types of checks which are as follows –
What are the types of checks on the basis of guaranteed payment?
There are four types of checks on the basis of guaranteed payment –
In today’s post, we have your Canceled check and its utility Hope it will be of some use to you. For more updates like this visit our website vijaysolution.com Bookmark the