Is stamp necessary on current account cheque?

Current account checks are differently printed and as such no need of stamping. Current account balance will not get any interest when in credit.

How do I sign a current account cheque?

Signature: Sign the check legibly on the line in the bottom-right corner. Use the same name and signature on file at your bank. This step is essential—a check will not be valid without a signature.

What is CTS Cheque and non CTS Cheque?

If the cheque book is not with CTS-2010 cheque leafs, they are referred to as non-CTS cheque books. In cheque truncation, the movement of the physical instrument is stopped and replaced by electronic images and associated MICR line of the cheque.

Where is cheque no written on cheque?

The six-digit number written at the bottom left-hand corner of the cheque is the cheque number. The MICR code is the Magnetic Link Character Recognition Code. The 9 digit of the MICR code indicates the bank and branch from which the cheque is issued to the account holder.

What should be written on the back of a cheque?

You endorse a check on the back of the check. There may be a simple line or a box that reads: “Endorse Here.” There’s usually another line that says, “Do not write, stamp, or sign below this line.” The endorsement area is typically about 1.5” long and covers the breadth of the check.

What precaution has to be taken in case of account payee cheque?

Precautions of the payee Payees are not obliged to accept cheques as a means of payment, and may therefore stipulate the conditions under which they will accept a cheque from a given person, in particular if the person is unknown, and may ask to see the identification of the cheque issuer.

Why are there two signatures on a check?

By requiring two signatures, the company is verifying that both signers agree that the payment is proper and reasonable. The requirement of two signatures reduces the likelihood that one will write improper checks to themselves or writing checks to a fictitious company.

Are CTS cheques valid?

Banks have been asked to ensure all cheques are compliant with CTS-2010 standards by April 1, 2013. Thus, non-CTS cheques would not be used after 31 March 2013. The main feature of CTS-2010 cheques is that a cheque can be cleared electronically.

Is non-CTS cheque still valid?

Most banks have already stopped clearing non- CTS cheques since January 1, 2019. if you are still holding a non- CTS cheque book, it is better you get it replaced from your banker. Cheque Truncation System basically helps in faster clearance of the cheques in the banking records.

Can we write account number on cheque?

And finally, when you give a cheque to someone, write down the cheque number, account name, amount and the date when it was issued or dated, because you might need this information incase you want to cancel the cheque.