How to Fill a Cheque Correctly: A Step by Step Guide

The first thing most people learn (or used to) when they open their first Bank Account is how to fill a cheque. Cheques were/are accepted as payment promises by lenders against EMI payments and service providers for utility bill payments. But today, cheque writing feels like a lost art. Nonetheless, cheques remain relevant. So let’s learn everything there is to know about cheque filling.  

A cheque is a financial instrument – a part of a cheque book comprising 10-25 cheque leaflets. Your bank issues a complimentary cheque book when you open a Savings, Current, or Salary Account. When filled out with details like the payee’s name, payment amount, and the account holder’s signature, a cheque represents a payment promised to an individual, entity, or service provider.

When you issue a cheque, the bank provides the cash equivalent to the bearer or credits it into the payee’s account. It is vital to understand how to fill a cheque book and each cheque accurately. 

Banks typically design cheque books in the same way, and each cheque leaflet includes similar sections where you need to fill in basic information. Each cheque also includes pre-printed information about the issuing bank.

The information you need to enter on a cheque while issuing one is as follows:

• The Date

• The Payee’s Name

• The Amount in Figures

• The Amount in Words

• The Account holder or drawer’s signature

The information you can easily see on each individual cheque is as follows:

• The bank's name, branch name and address 

• The Bank's IFSC Code – a series of 11 alphanumeric values, representing a bank’s branch.

• The Account Number assigned to each account, from which funds are debited.

• A unique 6-digit cheque number typically printed on the bottom margin of the cheque.

• A 9-digit Magnetic Ink Character Recognition (MICR) code, representing the name of the issuing city, bank, and branch.

Assume you have an HDFC Bank Savings Account and wish to issue a cheque to an individual or a business entity, e.g. a utility service provider. Here are the steps you must follow:

1. Enter the Date: You must first enter the date in the top-right corner of the cheque in DD/MM/YYYY format.
2. Enter the Payee’s Name: After entering the date, you can enter the Payee’s name, next to the word ‘Pay’, printed on the cheque. Ensure you enter the full legal name of the payee. If you’re paying a utility service provider, check your bills to see how to address the provider. 
3. Enter The Amount in Words: You must now enter the payable amount, spelt out in words, next to ‘Rupees’ on the cheque, e.g., ‘Thirty Thousand, Five Hundred’. Add the word only after the amount, and draw a straight line in the remaining space as a security measure. 
4. Enter the Amount in Figures: Next to the ‘Amount in Words’ space, is a small box for you to enter the payable amount in figures. Here too, you must enter the amount, e.g. 3,500/- and add a forward slash and a hyphen, leaving no space for anyone to add extra digits.
5. Enter your Signature: Every cheque comprises a section to sign your name. In some cases, your name may be pre-printed on the cheque, whereas in others, you may see a blank space or the word ‘Signature’. You must sign in that section to complete writing the cheque.

When filling out a cheque, you must also take care of the following things:

• Keep the word ‘bearer’ next to the Payee’s name if you intend for the payee or their representative to withdraw money over the bank’s cash counter.

• Cross out the word ‘bearer’ if you intend to provide an Account Payee cheque. 

• In such cases, you must draw two parallel diagonal lines on the top-left corner of the cheque and write the words 'A/C Payee' between the lines.

Besides filling out a cheque, you must maintain a record of the cheques issued. This, you can do, in the index section provided in the cheque book, which comprises some simple columns. Here are the steps explaining how to fill a cheque book. 

1. Enter the Cheque Number in the first column.
2. In the next column, input the date mentioned on the cheque.
3. Enter the name of the payee in the third column. 
4. Enter the amount in figures in the fourth column.
5. Lastly, mention the reason/purpose of cheque issuance.

The index section of your cheque book helps you keep a record of all cheque transactions. You can access it to cross reference cheque numbers, payees’ names and amounts paid. 

Banks reject cheques if they spot any errors, no matter how small. In such cases, the bank returns the cheque as unpaid, even if you have sufficient funds in your account. To ensure your cheque is not rejected, you must avoid the following mistakes.

• Cancelling and overwriting or using unclear, illegible handwriting on a cheque.

• Not filling out all the sections, e.g. date, signature, etc., while writing the cheque.

• Issuing a blank cheque; if it falls in to the wrong hands, the finder can write any amount.

• Issuing post-dated cheques if you are unsure about your future account balances.

• Writing the wrong date, typically at the start of a new year.

• Leaving big gaps or spaces after writing the payee’s name or amount on the cheque.

• Not cancelling the word bearer or forgetting to add the words ‘A/C payee’ on the cheque. 

Modern banking is all about online fund transfers through mobile apps and websites. It has come to the point where people are forgetting about the good old days of cheque payments. For the uninitiated, we hope this article on how to fill a cheque book proves helpful.  

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.