Bank Cheque Rule News: 90 percent people do not know when it is necessary to sign on the back of the cheque, those who transact by cheque should know the rules

News, Digital Desk- ( Bank Cheque Rule) Nowadays the trend of digital payment has increased, due to which people can transfer lakhs of rupees sitting at home. 

Despite this, the importance of payment by cheque has not decreased. Even today many big financial transactions are done through cheques only. If you also use cheques, then it is very important for you to know the rules related to it.

Many times you see that due to a small mistake the cheque gets bounced. 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. (Bank Cheque Rules)

Which cheque is signed on the back?

Most people are not aware of when to sign on the back of a cheque. Not all cheques are signed on the back. Signature is required only for bearer cheques, as it does not have the name of a person while depositing it in the bank. Signature is not required on the back of an order cheque.

This is why you are asked to sign on the back of a bearer's cheque-

If you issue a bearer's cheque and it gets stolen by mistake, it can cause you a big loss. There is no name of any person on this cheque, so the bank asks you to sign on the back of it. 

Without signing on the back, the bank does not accept a bearer's cheque. This ensures that the transaction done through this cheque has been done with your consent and if there is any mistake in it, the bank will not be responsible for it.

These are the rules regarding signature on the back of the cheque

- - Sometimes banks ask for signature on the back of the cheque to verify the signature on the cheque. But this is necessary only when a third person goes to the bank with a bearer's cheque.

- If you use a bearer's cheque to withdraw money from your own account, then there is no need to sign the back of the cheque.

- Apart from this, signatures are not made on the back of payee cheque and order cheque. Whereas, if the cheque amount is more than fifty thousand rupees, the bank also takes address proof.