Blank Cheque is normally called blank when it is not filled by date, payee name, amount, or anything else. But sometimes, it is required to give a blank check to someone as per demand or in the affection of love. Now you need to think about whether you should give a blank check to someone or not because if you will give it then it will be very risky for you. So here we will know how to use a blank cheque if required.
Contents of this post
What is a Blank cheque?
A Blank cheque is a cheque that is not filled means. blank cheque may or may not have a date and payee name. It can be made A/c Payee. A cheque can be signed without a mentioned name and also can define the amount limit. Overall it is very risky to give a black cheque.
What are the features of Blank Cheque?
If you are going to give someone a blank check then remember its features of it-
- An order to your bank to pay a stated sum from your account written on a specially printed paper.
- A negotiable financial instrument unless otherwise indicated.
- It is fully blank meaning without details such as name, amount, sign, and date.
- It may be signed if required.
- As proof, you should cancel it with a mark as canceled in between two parallel lines.
- Should not be signed if you do not want to pay someone.
- You can define the amount limit.
- It can be made a/c Payee.
- Overall it is very risky.
How do I issue a Blank cheque?
If you want to give a blank check in faith or love to your relative then you can issue it by
- make a sign and mention the amount limit such as “not over Rs-10000”
- or without sign but can be misused
- By also making a/c payee.
If you want to give a blank check as proof then you should issue it by
- Take a fresh cheque to cancel it
- Don’t sign it
- Write the word ‘canceled’ between two parallel line
- Ensure parallel lines do not cover details shown on the cheque used for NEFT, and RTGS.
And if want to give a blank check for a security cheque
- Companies and societies can demand a signed blank check in case of loan and advance.
- You can give a signed cheque and also can define the limit of amount approx loan amount.
- After returning loans, you should get your blank check returned also.
- You should provide only to the person in whom you believe.
Is blank cheque legal?
Blank Cheque Would Attract Presumption U/s 139 NI Act If Signatures Are Admitted: Supreme Court. The Supreme Court observed that even a blank cheque leaf would attract presumption under Section 139 of the Negotiable Instruments Act when signatures are admitted by the accused.
Should I give a blank cheque to my suppliers?
No, should not give a blank cheque to your suppliers anytime. You should fill the cheque with the proper amount of supply which is required to pay and the name of the supplier with mentioning the a/c payee.
Can I give a blank check without a signature?
NO, But sometimes a blank cheque is required to be attached to the documents, to ensure that the account details are correct and the account number and IFSC code can be captured. Do not sign such a blank check. Simply cross it across the face, with the words “canceled” so it cannot be used. Do not endorse such cheques. Or try to give a photocopy of such canceled cheque or whats up pdf.
What do you mean by Blank check?
A blank check refers to a blank cheque, there is no difference between these. It is only a spelling issue of the cheque and check. Both represent a cheque provided by the bank to the account holders of the bank to pay someone. According to the dictionary, a blank check is a check that has been signed but does not yet have the amount of money written on it.
Why a blank cheque is demanded at the time of loan?
There are some important reasons behind the demand for a blank check for loans-
- First, it matches the signature. It is seen through the signature that the person to whom the loan is being given is the same person who has an account with the bank. It is checked by sending it to the bank whose cheque it belongs.
- Second, it gives information about which bank the customer has an account with.
- Third, through the IFSC number entered in the cheque, it is known in which branch of the bank he has an account because the check is issued from the same branch of the bank.
How is a blank check different from other cheques?
There are different types of cheques you can see when you use banking in your life. We have a list of different types of cheques. You just need to check this one.
Faqs on Blank cheque
- Should I issue a Blank Cheque?
No, you should not provide a blank cheque to anyone else.
- When should I give a Blank cheque?
You can give a blank if required as proof but after doing it cancel.
- Should I sign a blank cheque?
No, should not sign but you may if you trust the person to whom the cheque will be given. And you can define the amount limit also.
- When a blank cheque can be cleared?
A blank cheque can be cleared by someone else if it is signed by the drawer or if the sign is misused by someone.
An Accountant, GST Practitioner, GST blogger, Website Developer, SEO Builder & Ceo & Co-founder of website https://gstportalindia.in for the help of GST Taxpayers of India. Having a perfect accounting experience of more than 10 years in a Private Company.