A cancelled cheque is a cheque that has been marked as "cancelled" usually by writing the word "cancelled" across the front of the cheque, along with two parallel lines drawn across the layout. Cancelled cheques are commonly used in various financial transactions and are often requested by organizations or institutions as a way to verify the account details of an individual or company.
You might need a cancelled cheque in the following situations:
- Opening a bank account: Banks often require a cancelled cheque as proof of the account holder's bank account details when opening a new account.
- Setting up direct deposit: Many employers require a cancelled cheque as proof of the employee's bank account details when setting up direct deposit of their salary.
- Applying for a loan: Financial institutions often require a cancelled cheque as proof of the loan applicant's bank account details when processing a loan application.
- Registering for government subsidies: Some government subsidies require a cancelled cheque as proof of the applicant's bank account details for direct deposit of the subsidy amount.
- Claiming reimbursement from insurance companies: Insurance companies often require a cancelled cheque as proof of the policyholder's bank account details when processing claims for reimbursement.
- Filing tax returns: The Indian tax authorities may require a cancelled cheque as proof of the taxpayer's bank account details for direct deposit of any tax refunds.
- Registering for a recurring payment: When setting up a recurring payment, such as a utility bill, a cancelled cheque may be required as proof of the account holder's bank account details.
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