How to Fill Cheque for Self & Other Person - A Step-by-Step Guide

Cheques are still one of the most convenient and popular financial instruments for carrying out transactions in India. Be it for paying due bills, transferring funds, or making payments, cheques allow you to handle monetary transactions smoothly and hassle-free. 

However, your bank might reject your cheque if the necessary information is missing. Thus, any overwriting issue in cheques might complicate the transaction process. To handle cheques efficiently, you must familiarise yourself with the different parts of a cheque, how to fill a cheque, and more. 

Importance of Knowing How to Fill a Cheque

Correctly filling out a cheque is essential as it lets you avoid the hassles of cancellations and cheque bounce penalties. Here are the importance of knowing how to write cheques:

• Convenience: If you want to pay without any hassles, opt to make payments with cheques. It will let you pay without carrying cash.
• Flexibility: Cheques can be post-dated to make payments after a certain date in the future.
• Security: Cheques are considered a safe and secure option for transferring money because only the payee (the person who receives the cheque) can instruct banks to transfer funds. If your cheque is lost or stolen, no third party will be able to collect the payment. 
• Traceability:  The unique reference number present on the cheque will allow you to track it easily. Thus, you can submit proof of payment if a disputes arises.
• Legal Protection: By opting for cheques, you can ensure legal protection and assurance for transferring funds to the right person.
• Direct Deposit: Cheques are a convenient way of verifying bank account details to make any payments electronically or directly.
• Proof of Account Ownership: Cheques usually act as a good proof of account ownership when you want to open a new bank account.

Components of a Cheque

Let’s look into the different components of a single cheque leaf in detail:

• Date: This is the date on which the cheque is issued. This is important when verifying its validity, as cheques deposited more than three months after the mentioned date are invalid and cannot be processed.
• Payee: The person to whom a cheque is given. The payee can be an individual or an organisation to whom money is to be paid or the recipient of payment. 
• Amount: This component is written twice - once in words and once in numbers to prevent any ambiguity. The words and numbers should match, and this is the amount to be paid to the payee.
• Signature: The drawer (the individual writing the cheque to make payment to the payee) must put his/her signature at the bottom of the cheque. This denotes personal authentication and indicates legitimacy.
• Cheque Number: This is a unique identification number provided for every cheque for easy tracking and processing.
• MICR Code: This stands for Magnetic Ink Character Recognition. It enables the easy processing of a cheque electronically.

How to Fill Cheque for Self?

Filling out a cheque for self is a simple and easy process. A self-cheque is written to transfer funds between two accounts held by the drawer in the same bank or different banks. Here is the detailed step-by-step guide to follow for filling out a cheque for yourself:

Step 1: Start filling out a cheque by mentioning the date in the top right-hand corner. Considering the type of cheque you are writing, you can enter either the current or a future date. The date on a cheque is written in the following format - DD/MM/YYYY.

Step 2: In the line mentioning ‘Pay to the order of’, write “Self” or your name as mentioned in your bank account. 

Step 3: In the box located on the right-hand side of a cheque, insert the amount you wish to pay in figures. To prevent any confusion about the amount, follow the following format when you write the amount - “6000/-”. 

Step 4: There’s a separate section for writing the payable amount in words. Here, you need to write the amount in words. Begin by writing ‘Rupees’ followed by the amount in words and ending with ‘Only’. For instance, if you are mentioning Rs. 6,000 to pay via a cheque, write ‘Rupees Six Thousand Only’ in this field. 

Step 5: Once you have provided all relevant information, sign the cheque at the bottom right-hand corner. Your signature denotes the cheque’s authenticity, allowing for easy verification and successful payment.

How to Fill Cheque for Other Person

Here is the detailed step-by-step guide to follow for filling out a cheque to be issued to a payee:

Step 1: Mention the date in the top right-hand corner. You can enter either the current or a future date. The date on a cheque is written in the following format - DD/MM/YYYY.

Step 2: In the line mentioning ‘Pay to the order of’, write the payee’s name. Write the exact name of the payee as mentioned in their bank records. 

Step 3: In the box located on the right-hand side of a cheque, insert the amount you wish to pay in figures. To prevent any confusion about the amount, follow the following format when you write the amount - “10000/-”. 

Step 4: In the section where you have to write the payable amount in words, spell the amount by starting with ‘Rupees’ followed by the amount in words and ending with ‘Only’. For instance, if you are mentioning Rs. 10,000 to pay via a cheque, write ‘Rupees Ten Thousand Only’ in this field. 

Step 5: Sign the cheque at the bottom right-hand corner. 

Common Mistakes to Avoid When Filling a Cheque

While filling out a cheque, there can be chances of making mistakes. Here are some common mistakes you should avoid while filling out a cheque:

• Wrong Date: While filling out a cheque, some people write the wrong date in a hurry. Thus, before you start writing the cheque, make sure to write the correct date.
• Differences in Amount in Figures and Words: The amount you mention while filling out the cheque should be the same in both words and figures. If it is different, your cheque will not be accepted. Thus, make sure to double-check and match the amount.
• Mistakes in the Payee’s Name: If the payee's name is spelt wrong, the bank may not accept the cheque, or worse, you may end up paying the wrong person. Thus, ensure to fill out names correctly.
• Mismatch of Signature: The signature on the cheque should be the same as recorded by your bank. If it fails to match, the bank might reject the cheque. Thus, make sure to use the same signature in your bank records. 
• Leaving Spaces: Leaving out spaces on your cheque can allow someone to add extra words or numbers. To prevent this, begin writing from the left-hand side of the field and draw a line after words or figures. 

You can ensure a safe and secure transaction process by properly understanding how to fill out a cheque for yourself or others. Following the above-mentioned steps while filling out a cheque can help you better manage your payments. Moreover, cheques let you experience a seamless banking experience. With its features of easy fund transfer online, you can efficiently manage your finances. 

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