Check Signing Rules: Do not make these 10 mistakes while signing a check, check immediately
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Rules for Checking Signature: Many of you must have used a check book. Along with opening an account, every bank gives passbook, ATM as well as checkbook to the customer, so that along with online and cash transactions, money transactions can also be done through it. Check book is used to record any major payment or transaction. If you also use checks often, then you need to be very careful. Because even a small mistake can cause a big problem.
Check is an instrument of the banking system through which a bank issues a check to make a payment to a particular person. The person to whom the money has to be given has to write his name in the cheque. However it can be the name of a person or a company or organization. The amount has to be written in the cheque, as well as it is necessary to sign the cheque. It is better to avoid these mistakes when signing a check than to be hit hard.
always after the amount
Whenever you issue a cheque, always write the amount in it. In fact, the only purpose of writing the amount at the end of the check is to prevent potential fraud. Therefore, after writing the amount in words, only the amount is written at the end.
never sign a blank check
Never sign a blank cheque. Before signing the cheque, write the name, amount and date of the person to whom you are giving the cheque. Always use your pen to write on the cheque.
There should be no mistake in the signature
Apart from money, if the signature of the person cutting the check ie the signature does not match with the signature present in the bank, then also the check will bounce. Banks do not honor a check in which the drawer’s signature does not match. So it is better to ensure that your signature matches with the signature of the bank before issuing the cheque.
enter the correct date
Make sure the date on the check is correct and matches the day you are issuing it. This is most important. This saves you a lot of confusion and ensures that when the check is valid for encashment.
use of permanent ink in checks
To avoid tampering with cheques, permanent ink should be used so that it cannot be mutilated or altered later. With this you can also avoid fraud.
Never sign a check and give it to anyone.
Never issue a blank cheque. The reason for this is that any amount can be filled in it. Doing so can be extremely risky.
Must have sufficient balance in the account
If the check bounces, you may have to go to jail along with fine. When a check is dishonored by a bank for any reason and the payment is not made, it is called a bounced cheque. The reason for this happening is mostly due to lack of balance in the account. Sufficient balance in your account is very important at the time of issuing a cheque.
avoid post-dating
Avoid post-dating the check as the bank may not honor it. The date plays an important role in paying the check to the bank. You can enter the date when you want the funds to be deducted from your account. If you have entered the wrong date, month or year, there is a good chance that your check will come back.
keep check number
Note down the check number and note it in your records. It is important to make sure that you write it in a safe place. You can use this check number to clear doubts or give it to the bank for verification whenever there is a dispute.
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