Cheque Rules: When is it necessary to sign on the back of a cheque, know what are the rules before getting into trouble?

At present, most people transfer money from one account to another through digital media. Many banks also provide such a facility by which you can transfer lakhs of rupees without going to the bank. But despite all this, payment through check has not been reduced. Even today, many big financial transactions are done through checks on a large scale. If you also do transactions through cheques, then you need to be aware of the rules related to it.

Many times you see that a check bounces due to some small mistake. Sometimes even a small mistake of yours can put you in financial trouble. Here we are telling you about some important rules related to cheques.

Which check is signed on the back?
Most people are not aware of when the signature is put on the back of the cheque. Let us tell you that not all types of checks are signed on the back. A signature on the reverse is required only for bearers' cheques. While there is no need to sign on the back of the order cheque. The bearer's check is the one which you have to deposit in the bank. It does not contain the name of any person, so it is necessary to sign behind it.

That's why we get bearers to sign on the back of the cheque.
If you deduct a bearer's check and it gets stolen by mistake, then it can cause a big loss to you. No person's name is there in this cheque, so the bank makes you sign behind it. The bank will not accept bearer's check without a signature on the back. This ensures that the transaction done through this check has been done with your consent and the bank will not be responsible for any mistake in it.

These are the rules regarding the signature on the back of a cheque.
Sometimes, to verify the signature done on the cheque, banks also get the signature done on the back of the cheque. But this is necessary only when a third person goes to the bank with the bearer's cheque. If you use a bearer's check to withdraw money from your own account, then there is no need to sign on the back of the cheque. Apart from this, payee checks and order checks are also not signed at the back. At the same time, if the check amount is more than fifty thousand rupees, the bank also takes the address proof.
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