How to Write Cancelled Cheque: Meaning, Sample, & Signature Rules

A cancelled cheque plays a crucial role in everyday banking and financial processes in India. Today, banks, employers, mutual fund houses, and government departments regularly ask for it to verify bank account details.

Therefore, understanding what a cancelled cheque is, how to write it correctly, and whether a signature is required becomes essential. This detailed guide explains everything clearly and practically.

What Is a Cancelled Cheque?

A cancelled cheque is a cheque leaf on which you draw two parallel diagonal lines and clearly write the word “CANCELLED” across it.

As a result, the cheque becomes unusable for any financial transaction. However, it continues to serve as authentic proof of your bank account details.

A cancelled cheque clearly displays:

• Account holder’s name
• Bank name
• Branch details
• Account number
• IFSC code

Cancelled Cheque Sample Explained

A proper cancelled cheque always has:

• Two diagonal lines
• The word CANCELLED written clearly
• No overwriting or damage

Therefore, banks quickly accept it without additional verification.

How to Write a Cancelled Cheque (Step-by-Step)

Follow these steps carefully to avoid rejection:

1. Take a fresh cheque leaf from your cheque book
2. Draw two parallel diagonal lines across the cheque
3. Write “CANCELLED” clearly between the lines
4. Keep all printed bank details visible
5. Sign only if the institution asks for it

As a result, your cancelled cheque becomes valid and ready for submission.

How to Write Cancelled Cheque Correctly

Although the process looks simple, people often make avoidable mistakes. Therefore, keep the following points in mind:

• Do not leave the cheque blank
• Do not cut or tear the cheque
• Do not overwrite account details
• Do not sign unless required

By following these rules, you ensure faster approval and fewer queries.

Cancelled Cheque Image or Photo Submission

Nowadays, many platforms accept a photo or scanned image of a cancelled cheque. However, the image must meet certain conditions.

Make sure that:

• The image remains clear and readable
• The word “CANCELLED” stands out
• No part of the cheque gets cropped

Otherwise, the institution may ask for re-submission.

What Is a Cancelled Cheque Leaf?

A cancelled cheque leaf simply refers to a cheque leaf marked as cancelled and used only for verification.

Therefore, it:

• Cannot transfer money
• Cannot be misused for payments
• Safely confirms bank account details

Is Signature Required on a Cancelled Cheque?

In most cases, a signature is not required.

Signature requirement by purpose:

Hence, always read the instructions carefully. If the form mentions “Cancelled cheque with signature”, then sign. Otherwise, leave it unsigned.

Why Do Banks Ask for a Cancelled Cheque?

Banks and financial institutions request a cancelled cheque because it provides accurate and verified bank details.

As a result, it helps prevent:

• Incorrect account credits
• Manual data entry errors
• Fraudulent transactions

Common uses include:

• Salary credit
• Loan disbursement
• Mutual fund investments
• PF withdrawal
• Insurance claims
• Vendor payments

Is a Cancelled Cheque Safe?

Yes, a cancelled cheque is generally safe. However, you should still follow basic precautions.

Important safety tips:

• Share only with trusted organizations
• Avoid posting it publicly
• Always write “CANCELLED” clearly
• Never share unused blank cheques

By doing so, you minimize any potential risk.

Cancelled Cheque vs Blank Cheque

Therefore, always submit a cancelled cheque—not a blank one.

A cancelled cheque may look simple, but it plays a vital role in modern banking. Therefore, preparing it correctly saves time and avoids unnecessary rejection.

As long as you:

• Write CANCELLED clearly
• Avoid unnecessary signatures
• Share it responsibly

—you can use it safely and confidently for any financial purpose.

RAJIL M P

Rajil M P is a seasoned banking professional with over eight years of experience in the Indian banking sector. He has successfully completed the JAIIB and CAIIB examinations conducted by the Indian Institute of Banking & Finance (IIBF), reflecting his strong academic foundation and practical expertise in banking, finance, and risk management. He is the founder and editor of IndianBanker.com, a trusted platform focused on banking news, exam preparation, financial updates, and practical tools for banking aspirants, professionals, and informed readers. Drawing from real-world banking experience, Rajil simplifies complex topics such as interest rates, loans, deposits, RBI policies, and government schemes, making them easy to understand and apply.