Importance of Signature on a cheque

Home / Legal Explainers / Money & Property / Money / Cheques / Importance of Signature on a Cheque

The signature on a cheque means that the person who has signed it is giving permission to the bank to take money out of his or her account. When you give a cheque to the bank, keep in mind the following:

Make sure the signature of the person who issues the cheque matches with the signatures in his bank records.
If your signature on the cheque mismatches with your signature in the bank records, then the bank can fine you for this.

A signature mismatch can attract a penalty if the bank decides to return your cheque.

Comments

Suneel rajpoot

June 9, 2023

मेरी चेक बुक खो गई है जिस पर तीन चेक पर मेरे सिग्नेचर है बताइए मैं क्या करूं दुरुपयोग ना कर दे कोई

Alka Manral

August 5, 2024

अगर आपकी चेकबुक खो गई है, तो इसके बारे में चिंता करने की कोई ज़रूरत नहीं है, बस जितनी जल्दी हो सके अपनी बैंक शाखा में जाएँ और इस मामले के बारे में एक आवेदन लिखें और शाखा अधिकारी आपके खाते से जुड़े सभी अप्रयुक्त चेक निरस्त कर देगा।

Have a question you want to ask our legal experts?

Ask Nyaaya

Related Resources

Encash a cheque

Process of encashing a cheque depends on whether it is a bearer cheque or order cheque. There are multiple modes for the same.

Endorsing cheques

By endorsing the payee can use the same order cheque to pay to someone else by writing that person’s name behind the cheque and signing it.

Cheque Bouncing

A cheque is said to have been ‘bounced’ or ‘dishonoured‘ is when it is deposited or presented for payment but could not be encashed by the holder of the cheque.

Order Cheque

An order cheque is a cheque where only the person or party in whose name the cheque has been drawn, can withdraw the cash.

Cheque Truncation System

Cheque truncation is a form of cheque clearing system. It digitises a physical paper cheque into a substitute electronic form.

Crossed Cheque

Crossing a cheque means that it cannot be transferred to anyone else. These cheques can only be credited to the payee’s account.

Importance of Signature on a Cheque