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Safety Measures: What are the do's and don'ts of using cheques?

Do's

  • Write clearly and legibly and always use permanent ink pens such as a ball pen

  • Ensure no alteration/amendment/erasure on the face of the cheque as banks will reject such cheques

  • Begin writing the amount in words close to the word "Ringgit" without leaving too much space in between the words written and always write the amount payable ending with the word "only". The amount in figures must be written close to the letters "RM" and should be written legibly

  • Make sure that no cheque is being removed from the cheque book without your knowledge and ensure that spoiled cheques are completely destroyed

  • Ensure that cheques are kept in a safe and locked place and never leave cheques whether signed or unsigned unattended

  • Undertake regular review of your stock of unused cheques and conduct regular reconciliation of cheques paid with your bank statement

  • Report immediately to your bank if there are cheques missing from your cheque book or discrepancies in your bank statement

  • Ensure your account has sufficient funds before you issue a cheque. It is not the duty of your bank to call you when there are insufficient funds, although some banks may do so as part of their service to their customers

  • When sending cheques by mail using window envelope, ensure that the envelope is of good quality. This prevent cheques from being revealed when the envelope is held against any light

Don'ts

  • Write below the MICR (Magnetic Ink Character Recognition) field of the cheque to allow smooth clearing of your cheque. The MICR field is usually a 5/8 inch band at the bottom of the cheque

  • Sign any blank cheque or give any blank cheque as payment

  • Use laser printer, felt tip pen, erasable pen or pencil or other printing techniques which can be easily erased and written over, to write details on a cheque. If you are using a typewriter, you should not use correctable ribbons

  • Issue payments in foreign currency using RM denominated cheques

  • Fold, pin or staple written cheques. If the cheque is folded, the clarity of the wordings which fall across the "folded" lines may be affected. In addition, folding may break the MICR field of the cheque, resulting in the cheque being rejected by the cheque processing system. Cheques should not be stapled to prevent accidental tearing


Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)


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Knowledge Base ID :   1371
Last Reviewed :   April 30, 2014
Source :   BankingInfo
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