What is a cancelled cheque? Have you ever wondered this? And why do we even need a cancelled cheque in the first place? Let’s find out.
What is a Cancelled Cheque?
A cancelled cheque, as the name suggest, is a cheque that has diagonal sloping parallel lines drawn in the middle of it with ‘Cancelled’ written in between these lines.
Why is a Cancelled Cheque Given?
A cancelled cheque is issues/given by the account holder to provide their account details as well as bank and branch details to the person concerned. There are various cases where one needs to submit a cancelled cheque, e.g.:
- Cancelled cheque for PF withdrawal
- Cancelled cheque for NPS
- Cancelled cheque at the time of college admission/job
- Cancelled cheque for loan applications
- Cancelled cheque for insurance policy purchase
Note: This is not an exhaustive list.
How to Write a Cancelled Cheque?
To write a cancelled cheque, follow the directions given below:
- Tear out a cheque leaf from your cheque book
- Draw 2 diagonal parallel lines crossing the cheque in the middle
- Sign this cheque
- No need to add any other details to make a cancelled cheque
Cancelled Cheque Format
The format of a cancelled cheque is shown as below:

Cancelled Cheque: FAQs
Yes. You need to put in your signature when giving a cancelled cheque to anyone, for any purpose.
No. A cancelled cheque cannot be used for anything other than account and bank information.
Draw two parallel lines diagonally in the middle of an empty cheque to make a cancelled cheque.
No. A cancelled cheque bears no charges or fees whatsoever.