We are using more and more non-traditional methods to complete financial transactions nowadays. Use of net-banking, credit and debit cards and e-wallets is on the rise. However, sometimes you may have to use a cheque, and even a cancelled cheque.
Counter-intuitively, a cancelled cheque has many uses. Let’s look at some of these.
What is it?
As the name suggests, a cancelled cheque has no monetary value. It is a common know-your-customer (KYC) document and is used for verifying the bank account.
Even though a cancelled cheque does not have any financial value, there have been reports of its misuse as recently as February 2016. Therefore, before handing over a cancelled cheque you should enquire if a photocopy or scanned copy of the cheque, or the first page of the passbook is acceptable. After all, it is only required for verification of the bank particulars.
