What are the parts or elements of a cheque?
It is important for you to know the elements of a cheque to ensure that the cheque is properly written since a duly completed and signed cheque acts as an authority to the drawee bank to withdraw from your account for payment to the payee.
- Name of your bank which is also called the "drawee bank" or paying bank
- "Account Payee Only" crossing is a directive to the collecting bank to pay into the account of the payee
- Payee is the person to whom the cheque is to be made. Ensure that the name of the person is correctly spelt and written close to the words "pay to". Draw a line on the space after the payee's name to avoid alteration
- Date of the cheque. To be able to receive payment, the date must be the current date
- The person who holds and presents the cheque at the bank. It is advisable to cross out "or bearer" to avoid any stolen cheque from being paid out
- The payment amount written in words. The same value will be written in the box beside it. Ensure that the amount in words and figures are written close to the words "Ringgit Malaysia" and "RM" printed on the cheque. Do not leave any gap by drawing a line after them. Make sure that the amount in words and in figures tally, otherwise, the bank will return the cheque
- Your signature as the "drawer" of the cheque
- Serial number of the cheque. Each cheque has a different number for identification purposes
- The drawee bank's state and branch code
- Your current account number
- The drawee bank's internal code for current account product
Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)
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