How to Use a Cancelled Cheque: A Step-by-Step Guide

Using a cancelled cheque may seem like a straightforward task, but there are several important aspects to consider when utilizing it for various purposes. Whether you need it for setting up electronic payments, verifying your bank account, or for any other financial transactions, understanding the correct procedures is crucial to avoid any potential complications. In this comprehensive guide, we will delve into the intricacies of using a cancelled cheque, providing you with a detailed step-by-step approach to ensure you handle it correctly.

What is a Cancelled Cheque?

A cancelled cheque is a check that has been canceled by the issuer by drawing two parallel lines across it and writing “cancelled” between them. It is commonly used for providing bank account details such as account number, MICR code, and IFSC code.

When to Use a Cancelled Cheque?

  • Setting up Electronic Payments: Many organizations require a cancelled cheque to set up electronic payments like salary transfers or vendor payments.
  • Verification of Bank Account: Providing a cancelled cheque is a common practice to verify the authenticity of a bank account when applying for loans or investments.
  • Address Proof: Sometimes, a cancelled cheque is used as proof of address, as it contains the name and address of the account holder.

Step-by-Step Guide on How to Use a Cancelled Cheque:

Step 1: Obtain a Blank Cheque

Ensure you have a blank cheque from the bank account you wish to use for the transaction. It should be unsigned and contain no other markings or alterations.

Step 2: Write “Cancelled” Across the Cheque

Using a pen with permanent ink, draw two parallel lines across the cheque. In between these lines, write the word “cancelled” clearly and legibly.

Step 3: Provide Additional Information

If required, write your name, account number, MICR code, and IFSC code on the cheque to ensure all necessary details are visible.

Step 4: Submit the Cancelled Cheque

Submit the cancelled cheque to the relevant organization or individual as per their instructions. Ensure that all details are clearly visible for easy processing.

Tips for Using a Cancelled Cheque:

  • Use a Dark Ink: Ensure that the word “cancelled” is clearly visible on the cheque by using a dark ink pen.
  • Do Not Fold: Avoid folding the cancelled cheque, as it may damage the information written on it.
  • Keep a Copy: Make a copy of the cancelled cheque for your records before submitting it for any transactions.

Frequently Asked Questions (FAQs):

1. Can I reuse a cancelled cheque?

No, a cancelled cheque cannot be reused for any financial transactions as it is considered void once cancelled.

2. Is a photocopy of a cancelled cheque acceptable?

In most cases, organizations require the original cancelled cheque for verification purposes. However, some may accept a photocopy in certain circumstances.

3. How long is a cancelled cheque valid for?

There is no specific expiration date for a cancelled cheque. However, it is advisable to provide a recent one to ensure accuracy of information.

4. Can I cancel a cancelled cheque?

Once a cheque is cancelled, it cannot be “un-cancelled.” If needed, you can request a new cheque from your bank.

5. Why is a cancelled cheque required for electronic payments?

A cancelled cheque provides the necessary bank details required for electronic transactions, ensuring that funds are transferred to the correct account securely.


Using a cancelled cheque is a common practice in various financial transactions, and understanding the correct procedure is essential to avoid any errors or delays. By following the step-by-step guide provided in this article and adhering to the tips mentioned, you can ensure that your cancelled cheque is utilized effectively for the intended purpose. Remember to keep the original cancelled cheque safe and only provide copies when necessary to safeguard your financial information.

Kavya Patel
Kavya Patel
Kavya Patеl is an еxpеriеncеd tеch writеr and AI fan focusing on natural languagе procеssing and convеrsational AI. With a computational linguistics and machinе lеarning background, Kavya has contributеd to rising NLP applications.

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