Rules For Drawing A Cheque

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If the drawer makes the cheque properly and if the balance of the drawer at the bank permits, the bank must pay the amount of cheque as soon as it is presented. If the drawer does not make the cheque properly, the bank rejects payment. Hence, to make the cheque properly, the following points or rules must be considered.

1. Date
Date should be mentioned on the cheque properly. If the cheque is more than three months old or contains future date then the bank will not pay the amount.

2. Name Of The Payee
The name of the payee should be mentioned on the cheque.

3. Amount Of The Cheque
The amount of the cheque should be mentioned both in words and figures clearly. The amount written in the word should tally with the amount written in figures.

4. Signature
The drawer should sign the cheque properly. The signature given on the cheque should tally with the signature given on the signature specification card. The signature specification card is kept by the bank.

5. Account Number
The drawer should mention his account number clearly and correctly.

6. Minimum Balance
The amount mentioned on the cheque should not be more than the amount deposited in the bank. Beside it, a certain amount of minimum balance should always be there in the account as per the rule of the bank.

7. Crossing And Overwriting
There should not be any crossing and overwriting in the cheque.

8. Condition Of The Cheque
Cheque should be in proper condition. If the cheque is torn, wet and spotted, it will not be acceptable to the bank.

9. Endorsement
The ordered and crossed cheques should be transferred by proper endorsement and delivery; otherwise, the amount of cheque will not be paid by the bank

Related Topics
Meaning And Characteristics Of Cheque
Parties Involved In A Cheque
Dishonor Of Cheque And Reasons For Dishonor


  1. Is 'and' necessary while writing amount in words?

  2. Ofcourse man it plays a very important role

  3. If i issue a cheque in pay column self then another one or bearer any person could get the payment or not? Please reply.

  4. The information provided by you is really helpful.....