Cheque Types & How to Write a Cheque (Cancelled Cheque Explained)

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Last verified: June 2026, against RBI/NPCI rules and official procedures. Charges, limits and processes can vary by bank and change over time — confirm with your bank. General information, not financial advice.

Even in a digital age, cheques still matter — for rent, deposits, and as a “cancelled cheque” for verification. Here is how to write one correctly and the cheque types you should know.

How to write a cheque

1. Date — top right.
2. Payee — write the name after “Pay” exactly as it should appear.
3. Amount in words — followed by “only” (e.g., “Twenty thousand rupees only”).
4. Amount in figures — in the box, with a clear ₹ and no gaps.
5. Signature — bottom right, matching the bank’s record.
6. Avoid overwriting; draw a line after the amount to prevent tampering.

Cheque types

• Bearer cheque: payable to whoever holds it — riskier if lost.
• Order cheque: payable only to the named payee.
• Crossed cheque: two parallel lines on top-left mean it can only be deposited into an account, not cashed over the counter.
• Account-payee cheque: “A/C Payee only” — credited only to the payee’s account (safest).
• Post-dated cheque (PDC): dated for the future.
• Stale cheque: a cheque is valid for 3 months from its date; after that it can’t be cleared.

What is a “cancelled cheque”?

A cheque with two lines drawn across it and “CANCELLED” written — it is not for payment. It is used to verify your account number, IFSC and name (for KYC, auto-debit mandates, refunds). Never sign a cancelled cheque.

CTS and safety

India uses Cheque Truncation System (CTS) clearing. Use a pen (not pencil), keep the amount in words and figures matching, and report lost cheque leaves to your bank immediately.

FAQs

How long is a cheque valid?

Three months from the date written on it.

What does “A/C payee only” mean?

The cheque can only be credited to the payee’s bank account, not paid in cash — the safest form.

Do I sign a cancelled cheque?

No. A cancelled cheque is only for account verification; never sign it.