Learn how to cancel a cheque in 2 simple steps to give to your lender

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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:

  1. Draw two parallel lines diagonally across the cheque.
  2. Write ‘CANCELLED’ between the two parallel lines.

Some Do’s and Don’ts:

  1. Do use a blue or black pen. Any other colour will make the cancelled cheque invalid.
  2. Don’t write anything else on the it except “CANCELLED”
  3. Don’t strike out any other details.
  4. Don’t sign a cancelled cheque.
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Example of a Cancelled Cheque

What information is on a cheque?

  1. Your full name
  2. Your bank account number
  3. The Indian Financial System Code (IFSC) of the bank branch
  4. The Magnetic Ink Character Recognition (MICR) code of the bank branch
  5. 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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