9/20/2023 0 Comments Handover chequebook![]() To activate ECS on your bank account, you will be required to submit a canceled cheque to your bank. Electronic clearance service (ECS): ECS facilitates automatic transfer of funds from one account to another.Employee Provident Fund Withdrawal: Canceled cheques are also required at time of withdrawing provident fund investments.Purchasing an Insurance Policy: At time of purchasing an insurance policy such as term plan, endowment policy, the insurance company or agent will ask for a canceled cheque.To initiate the process of these installments, one has to submit a canceled cheque as evidence of having a bank account. Equated Monthly Installments (EMIs): In the case of EMIs, people pay monthly installments in case of car loan, home loan, education loan, and personal loan or when they purchase an expensive gadget or any other item.Bank Account: While opening a current account or savings bank account, one has to submit a canceled cheque to finish the account opening process.Then the brokerage company might ask you to submit a canceled cheque along with other documents to validate that the bank account is associated with you only. Know Your Customer (KYC)/Demat Formalities: If one is planning to open a demat account for investing in mutual funds or in equities.You might have to submit a canceled cheque in the following situations: When Do We Need A Canceled Cheque In India? To be more safe, turn the cheque and write the ‘cancel’ word again.Always use dark, bright and waterproof black or blue ink to write the word ‘CANCELED’ on your cheque.Do not draw the lines covering any crucial information mentioned on the cheque such as the account number, IFSC code, MICR code, name of the bank, etc. ![]()
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