Have you ever withdrawn money by using a self-cheque? Don’t worry, there are a lot of other ways to withdraw cash like you can use an ATM which is one of the most convenient ways. But, in certain conditions, you need to use a cheque. However, this article will be the ultimate guide on filling a self-cheque to withdraw cash in your hand. But, before jumping the procedure, let’s know what a cheque is?
What Is A Cheque?
A cheque is a document or a piece of paper that has the significance of ordering the particular bank to pay the filled amount on the Cheque to the name mentioned on the top of it. But, when you mention your name as a payee, then it is called self cheque payment.
Types Of Cheque
There are different types of Cheque in India like:
- Bearer cheque
- Order cheque
- Crossed Cheque
- Open Cheque
- Post-dated Cheque
- Stale Cheque
- Traveler’s Cheque
- Banker’s cheque
Also Read: What is Cancel Cheque & Why We Need it?
How To Use Cheque?
You can use a cheque to transfer money from your account to any other account of either someone else or yourself if you issue a cheque with the name of a second party. He will be regarded as a drawee, and since you issued the cheque, you are a drawer.
This Cheque is provided by the bank when you open your account. You write the required details of the drawee, including the date, name of the drawee, and amount on the Cheque, and you sign on it and submit it to the bank representative or the beneficiary.
The beneficiary visits the bank and submits it there. He can also drop into any nearby cheque machine. Then the bank representative collects the cheque from dropbox and clears it. But, before clearing it, the bank asks the drawer to be sure. And the amount is transferred to the beneficiary account.
But, sometimes, you issue a cheque with your name to withdraw the desired amount. This is termed a self-cheque. Now, understand how to fill a self-cheque?
Also Read: What are Duplicate Checks?
Terms & Conditions To Fill Self-Cheque
It is very simple to fill a self-cheque but, filling a self-cheque, you must be aware of its terms and conditions, for e.g. you must have a sufficient amount in your account. Avoid overwriting or spelling mistakes while filling the Cheque.
Your signature must match your actual signature, the way you have signed at the time of account opening. A bit of a mismatch of your signature can hold your Cheque to be cleared.
Process Of Filling Self Cheque To Withdraw Money
- Fill the date on the top right side of your cheque.
- Write the proper spelling of the payee’s name. If you are drawing for yourself, then write only ‘self.’ But, if you are transferring to someone else, you will need to write the name of that beneficiary. This is the most important step where everyone commits a mistake.
- Mention the amount in the figure, not in numbers. (Five thousand only)
- Mention the amount in words (numerical value like 5000/)
- You sign at the bottom of the cheque. Sometimes, you also need to sign on its backside by putting your mobile number for any verification needed.
Now, submit this Cheque to the counter and wait till it’s cleared. Or you can drop it in the cheque box.
A cheque is a very confidential document that carries your personal information like bank name and account details. Therefore, you must be careful about it to avoid any fraudulent activities.