A cancelled cheque is simply a cheque with two lines drawn across it and the word “CANCELLED” written on top — without your signature. It cannot be used to withdraw money; it is used only to prove your account details.
Why it proves your account
Every cheque is pre-printed with your account number, IFSC code, branch and account-holder name. A cancelled cheque lets a company verify those details reliably, which is why it is requested for so many processes.
When you need one
- Opening a demat or trading account
- Setting up EMI auto-debit / ECS mandates
- KYC for insurance, mutual funds or loans
- Receiving salary, refunds or subsidies directly to your account
How to make one correctly
- Take a cheque leaf from your cheque book.
- Draw two parallel lines across it.
- Write CANCELLED in capitals between or across the lines.
- Do not sign it and do not fill in any amount or name.
Is it safe to share?
Because it is unsigned and marked cancelled, it cannot be used to take money from your account. It does reveal your account number and name, so share it only with trusted, verified organisations — never with strangers. For how to cancel an issued cheque instead, see our cheque guide.
Frequently asked questions
Do I need to sign a cancelled cheque?
No. A cancelled cheque must be left unsigned. You only draw two lines and write CANCELLED across it.
Why do companies ask for a cancelled cheque?
To verify your account number, IFSC and account-holder name from the pre-printed details, for things like demat accounts, auto-debit mandates and KYC.
Is it safe to give a cancelled cheque?
Yes, to trusted organisations. As it is unsigned and marked cancelled it cannot be used to withdraw money, but it does show your account number, so do not share it with strangers.
Limits, charges and procedures are set by the RBI, NPCI and individual banks and can change. Always confirm current details in your own bank’s app before a transfer. Last updated June 2026.