Cancellation of cheques

 

Cancellation of cheques

 

ü Before verifying a signature on a cheque, cancellation officer shall invariably refer to the specimen signature Card of the drawer of the cheque.

ü In case signature differ, cheques shall not be passed unless drawer confirmation is obtained. However, after returning the cheque, reference should be made to the manager.

ü If parties have changed the style of their signature, fresh signatures shall be obtained on the specimen signature cards approved by the authorized officer along with a letter of request before passing the cheque and the old signature cards should be treated as cancelled giving date retained with the specimen signature cards.

ü Cancellation officer should not pass any cheque unless the cheque is posted in the core banking software.

ü The cancellition shall be done by waving a red line across the signature of the drawer of the cheque. The cancellation officer shall sign in full in red ink near the drawer signature.

ü In case of payment of cheque in cash, a ‘pay cash” stamp shall be affixed on the cheque, and signed by the cancellation officer.