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Cancelled Cheque

A cancelled cheque is any cheque which has been crossed with two lines and the word “cancelled” is written across. It’s a proof that the individual maintains an account with the bank. Except for this, you do not need to sign or write anything on the cheque. The reason why you are asked to cancel the cheque is to make sure that it is not misused in any manner. Read on to know more about the uses of a cancelled cheque.

When do you require a cancelled cheque?

Many a times you would have often come across the term ‘cancelled cheque’ while transacting in bank. However, the uses of cancelled cheques are not limited to banking transactions. Here we list out some of the common purposes of a cancelled cheque:

  • You may be required to provide a cancelled cheque while opening a savings account or current account in the bank.
  • Setting Electronic Clearance Service (ECS) from the account.
  • You may require a cancelled cheque for KYC purpose. Nowadays, most investment firms require you to submit a cancelled cheque as part of KYC.
  • For withdrawal of EPF funds.
  • Financial lending organizations often ask borrowers for a cancelled cheque to process their loan request.
  • When purchasing insurance policies such as endowment plan or money back plan, you may be asked to submit a cancelled cheque.
  • You will be required to submit a cancelled cheque when opening a demat account.

How to cancel a cheque?

You can simply cancel a cheque leaf by drawing two parallel lines over it and writing “cancelled” in between the lines. You should not sign on a cancelled cheque. A cancelled cheque leaf can provide your account information such as account number, your name (as in the bank account), MICR code, bank name, and bank branch. Even though fraudulent activities using cancelled cheques are too rare, you should still make sure that the person or institution to which you handover your cancelled cheque is highly reliable.


A cancelled cheque is a method to ensure that no one can access your account in a fraudulent way. A cancelled cheque still contains information such as your bank account number, account holder’s name, IFSC code, MICR code, name of the bank, etc. Always make sure that you do not fix your signature on a cancelled cheque, otherwise it might become easier for fraudsters to replicate the same. However, in case someone mandates the requirement of a signature on the cheque leaf obtain, a statement or declaration in support of the same.

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