What is cancelled cheque ?
A cancelled cheque is a blank cheque without sign of a account holder that contains two parallel line drawn across the cheque. It is also necessary to write cancelled word between the two parallel line. Purpose of cancelled cheque is that required origination used to collect details like account number, IFSC code, MICR code, name of bank, branch address etc. Cancelled cheque is a proof of bank account.
Mainly need cancelled cheque for following purpose
Morden time there is a fashion to buy 90% product on Instalment basis. Buying person pay such EMI on monthly basis. There are many type of loan like home loan, car loan, personal loan etc instalment also need to pay monthly basis, origination who given such loan ask for submit cancelled cheque copy.