Complete Guide On How To Write Cancelled Cheque

Personal Finance

Most banks issue their customers chequebooks to make it easy for the account holder to draw money or make payments easily. You might also be using cheques from your chequebook for the same purpose. Sometimes you must submit a cancelled cheque for some vital tasks. In such a situation, you must know how to make cancelled cheque without errors.

A cancelled cheque is not a valid instrument as per the rules of the banks. So, the cancelled cheque cannot be used to draw money from your bank account. Various entities can use this cancelled cheque to verify your account details with the bank. Hence, you need to learn how to write cancelled cheque for such important needs. Read on to learn more about writing a cancelled cheque.

What is a cancelled cheque?

A cancelled cheque is simply a new leaf of a cheque that has been cancelled as per the guidelines. Every cheque includes crucial details like your name, account number, bank and branch details, cheque number, IFSC, and MICR code. As a cheque includes all these details, it is used by many entities to verify your account details.

As a signed cheque can be used to draw money from your account or make payments, you must never issue a blank, signed cheque to anyone. It is hence vital to cancel the cheque and ensure that it will be used only to verify the bank details and that there will be no misuse.

A cancelled cheque is not valid for bank-related tasks and is only helpful for tasks like creating an ECS mandate, availing loans, or buying an insurance policy. It will be useful if you maintain a record of all the cancelled cheques you have issued for future reference.

It is essential to note that another reason to cancel a cheque is if you made some mistakes while writing it. To prevent its misuse, you must cancel any such cheques as soon as possible. The process for how to make cancelled cheque will be the same for all purposes.

Need for a Cancelled Cheque

It is important to note that when you cancel a cheque due to a mistake, it cannot be precisely termed as issuing a cancelled cheque. It is mainly you ensuring that no one misuses the cheque. Here are some reasons to know before you learn how to write a cancelled cheque.

  • For EMIs: When you obtain a loan, the bank or the financial institution will ask you to submit a cancelled cheque. This cheque will only be used to set up the EMIs that will be debited from your bank account. So, ensure the account is active and has enough balance to honour the EMIs.
  • Receiving payments: If you have registered as a vendor or freelancer with a company, then your bank details are required for the payment. Most companies will ask for a cancelled cheque to process the payment to your account. 
  • For KYC: If you are looking to open a Demat account or wish to avail of other financial facilities, you will be asked to submit a cancelled cheque by that particular entity along with other documents like a PAN card and an Aadhar card. 
  • Receiving Salary:  Most employers now transfer the employee’s salaries through direct bank transfers. You will be asked to submit a cancelled cheque to register your account details with your employer. 
  • Activating ECS: If you are looking forward to starting the ECS facility on your bank account, you must submit a cancelled cheque to the bank. Otherwise, this service cannot be started. 
  • Starting a bank account: Many banks require their new customers to submit a cancelled cheque as part of the process. If you wish to open a new account, the bank may ask for a cancelled cheque. 
  • Buying Insurance: If you want health or life insurance, the insurance company will ask for a cancelled cheque. Registering your bank details and transferring claim payments to your account is necessary.

How to Write Cancelled Cheque?

Before noting the steps for how to make cancelled cheque, it will be useful for you to ensure that you do not assign this task to anyone else. You must complete it yourself to avoid any errors. Here are the steps you need to know on how to write cancelled cheque:

  1. Take out your chequebook for an active account. If you have multiple bank accounts, select a chequebook with the maximum number of check leaves available. This will ensure that your normal banking tasks are not affected by the lack of blank cheque leaves available.
  2. Draw two parallel lines across the middle of the cheque. In between these lines, write the word “Cancelled.” While you can use any type of pen, a blue-coloured ballpoint pen is ideal.
  3. While drawing the lines, ensure they do not cover any crucial details like account numbers or IFSC.
  4. You may also cancel out the words “or bearer” and put a line in the amount box. This is not necessary, though.
  5. Make sure you do not write any other details on the cheque. Do not sign or enter the date in the cheque.
  6. You must make a record of the cancelled cheque. So, in the counterfoil, enter the details like the cheque number, the date on which it was issued, and why it was issued. This will help you manage the cheques in a better way.
  7. You can also click a picture of the cancelled cheque and email it to yourself for personal reference.


You must know how to make cancelled cheque to avoid any issues later on. The steps in the process of how to write cancelled cheque are very simple and easy to complete. But it is vital to ensure that you issue cancelled cheques carefully and only when necessary.

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