Cheques as a means of making and receiving payments are becoming less popular with the introduction of online and digital banking and UPI apps like GooglePay and PayTM.
Despite this, they remain a form of documentation lenders require when you apply for a business loan or when you open a new bank account. Cancelled cheques can’t be used to withdraw money from your bank account, but they do contain important financial information that lenders require.
Cancel a cheque in 2 simple steps:
- Draw two parallel lines diagonally across the cheque.
- Write ‘CANCELLED’ between the two parallel lines.
Some Do’s and Don’ts:
- Do use a blue or black pen. Any other colour will make the cancelled cheque invalid.
- Don’t write anything else on the it except “CANCELLED”
- Don’t strike out any other details.
- Don’t sign a cancelled cheque.
What information is on a cheque?
- Your full name
- Your bank account number
- The Indian Financial System Code (IFSC) of the bank branch
- The Magnetic Ink Character Recognition (MICR) code of the bank branch
- The name of your bank, bank branch, and location
Click here to learn more about cancelled cheques.
We recommend ensuring you have a chequebook and still have blank cheques to prepare the cancelled cheque for a lender before you apply for a business loan. This will allow you to avoid any delays in your loan approval and disbursal process, helping you get your business loan in your bank account faster.
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