Cheque Book

A cheque book is a booklet of pre-printed cheques issued by your bank. Each cheque in the book has your account number, bank branch details, and MICR code printed on it. You use cheques to make payments by authorising your bank to transfer a specified amount from your account to the recipient’s account.

What Is a Cheque Book?

A cheque book typically contains 10, 25, or 50 cheque leaves. Each leaf is a negotiable instrument, which means it has legal standing and can be used to make or receive payments. When you write a cheque, you fill in the payee’s name, the amount in words and figures, the date, and sign it.

Cheques are widely used for rent payments, vendor payments, high-value transactions, and situations where digital payment is not accepted.

Parts of a Cheque

Every cheque leaf has the following sections:

– **Payee name** – the person or entity to whom you are paying
– **Date** – the date on which the cheque can be presented for clearing
– **Amount in figures** – the payment amount in numerals
– **Amount in words** – the same amount written out in words
– **Signature** – matches the signature on record at the bank
– **MICR code** – printed at the bottom for automated processing
– **Cheque number** – a unique identifier for each leaf

Types of Cheques

– **Bearer cheque** – payable to whoever presents it at the bank counter
– **Order cheque** – payable only to the named person or entity
– **Crossed cheque** – two parallel lines drawn across the top; can only be deposited into the payee’s account, not encashed at the counter
– **Account payee cheque** – most secure; can only be credited to the payee’s account

How to Request a Cheque Book

You can request a new cheque book through:

1. **Net banking** – most banks allow you to request a cheque book online
2. **Mobile app** – submit a request through your bank’s app
3. **ATM** – select the cheque book request option
4. **Branch visit** – submit a written request at the counter

The bank dispatches the cheque book by post to your registered address, usually within 5 to 7 working days.

Important Precautions

– Store your cheque book safely and never leave blank signed cheques with anyone
– Draw a line after the payee name and amount to prevent alterations
– Use crossed cheques for most payments to reduce misuse risk
– Report a lost cheque book to your bank immediately to block the cheque numbers

Practical Example

Arjun pays monthly rent of Rs 25,000 by cheque. He writes the landlord’s name, the amount, and crosses the cheque with two parallel lines and writes “Account Payee Only” between the lines. This ensures the money goes directly into the landlord’s bank account and cannot be misused if the cheque is lost in transit.

Key Takeaways

– A cheque book contains pre-printed cheques linked to your bank account
– Always use crossed or account payee cheques for secure payments
– Request a new cheque book through net banking, the mobile app, or the branch
– Never sign blank cheques or leave your cheque book unattended
– Report loss of a cheque book to your bank immediately to block misuse