2 min read
10 June 2025

The Insta EMI Card has revolutionised how we make purchases today. While modern payment methods continue to evolve, certain traditional banking documents remain essential—like CANCELLED cheques. These important documents verify your bank account details when applying for financial services, including when you shop using your Insta EMI Card. Understanding how these documents work alongside convenient EMI options ensures smoother financial transactions for all your purchases.

This comprehensive guide explains everything about cancelled cheques—from proper cancellation techniques to their various applications—helping you manage your finances effectively while making the most of your Insta EMI Card benefits.

What is a cancelled cheque?

A cancelled cheque is an essential banking document marked with two parallel lines with "CANCELLED" written between them across the cheque leaf, ensuring it cannot be misused or encashed. This document serves as proof of your bank account ownership and contains vital details such as your account number, name, MICR code, IFSC code and bank branch information. When shopping with your Bajaj Finserv Insta EMI Card, you might need to submit a cancelled cheque as verification.

Why is it necessary? Financial institutions require cancelled cheques for various transactions including setting up EMI payments, loan processing, and KYC verification. This simple document helps prevent fraud by confirming your banking details before financial commitments are made.

Remember, a properly cancelled cheque cannot be used for withdrawals, ensuring your account security while still serving as legitimate proof of your banking relationship.

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Why do you need a cancel cheque?

  1. Bank Account Verification
    A cancelled cheque helps banks verify your account details when opening a new account, applying for loans, or availing of other financial services.
  2. ECS Setup (Electronic Clearing Services)
    When setting up automatic payments for EMIs, bills, or subscriptions, a cancelled cheque is used to link your bank account securely for ECS mandates.
  3. Income Tax Refunds
    While filing income tax returns, the IT department may ask for a cancelled cheque to ensure the refund is credited to the correct bank account.
  4. Salary Account Setup
    Employers often request a cancelled cheque to directly deposit your salary into the right account without errors.
  5. KYC (Know Your Customer) Compliance
    Financial institutions use a cancelled cheque as part of the KYC documentation process to validate your bank account details.

How to Cancel a Cheque - Step by Step Process

A cancelled cheque is often needed for bank processes or financial applications. Here’s how you can make one in just a few simple steps:

Step 1: Take a fresh cheque

  1. Pick a blank cheque from your chequebook.
  2. Do not sign it.

Step 2: Mark it as cancelled

  1. Draw two parallel lines across the cheque.
  2. Write "CANCELLED" in big, clear letters between the lines.

Step 3: Keep important details visible

  1. Make sure the cheque still shows:
    1. Your account number
    2. Your name
    3. Bank’s name and branch
    4. MICR code
Insta EMI Card
Insta EMI Card

When is a cancelled cheque required

A cancelled cheque is required for a number of reasons in India. Firstly, it is used as proof of payment in various financial transactions such as loan applications, insurance policies, and credit card applications. It serves as evidence of the account holder's name, bank details, and signature. It is also used as a means of providing bank account details to third parties, such as for direct deposit of salaries and dividends. Additionally, cancelled cheques are used for setting up automatic bill payments, as it provides authorization for the service provider to deduct the required amount from the account holder's bank account. Therefore, it is important for individuals to keep a record of cancelled cheques to ensure smooth financial transactions and to avoid any disputes in the future.

  1. For Know Your Customer (KYC): When you need to do the KYC for making investments in the stock market, mutual funds, or other financial schemes, a cancelled cheque is required.
  2. EPF: It is a must to provide a cancelled cheque for withdrawing funds from your Employee Provident Fund (EPF) account.
  3. ECS: To enable Electronic Clearing Service (ECS) for your bank account, you need to provide a cancelled cheque as proof of your bank account details.
  4. NBFC: A cancelled cheque is often required by banks or Non-Banking Financial Companies (NBFC) to process Equated Monthly Installments (EMIs) for loans or credit amounts.
  5. DEMAT: For opening a Demat account, you need to provide KYC documents such as proof of identity and address, along with a cancelled cheque as proof of your bank account details.
  6. Insurance: While purchasing an insurance policy, submitting a cancelled cheque serves as proof of your bank account, which is necessary for the insurance company to process premium payments and other financial transactions.

Important uses of cancelled cheque

  • EMI purchases – Submit a cancelled cheque to verify bank details while buying high-value products on EMIs.

  • Loan applications and ECS registration – Required for loan approvals and setting up Electronic Clearance Service (ECS) for automatic payments.

  • Investments and insurance – Needed when investing in mutual funds, provident funds, or purchasing an insurance policy to link your bank account for payments.

How to prevent risk associated with a cancelled cheque

Understanding the correct way to cancel a cheque is essential to prevent any potential issues or rejections.

  • No risk of fraudulent withdrawals – Cancelled cheques are legally void, ensuring they cannot be misused for unauthorized transactions.

  • Proper cancellation method – Always use a blue or black ink pen to cancel cheques, as banks may reject cheques cancelled in other colours.

  • No signature required – A cancelled cheque is only for verification purposes, so signing it is unnecessary.

  • Mark clearly to avoid rejection – Draw two parallel lines and write ‘Cancelled’ to ensure it is correctly invalidated and accepted when required.

What should I do if a cancelled cheque is lost or misplaced?

If you lose your cancelled cheque, act promptly to protect your banking information. First, contact your bank immediately to report the loss—they will advise on specific security measures for your account. Secondly, monitor your account statements regularly to identify any suspicious transactions and report them without delay. Many banks offer alternatives such as bank statements with IFSC details or account verification letters that can serve the same purpose as a cancelled cheque for your Bajaj Finserv Insta EMI Card application or other financial requirements.

What is the difference between a stop payment and a cancelled cheque

STOP Payment

CANCELLED Cheque

The cheque doesn’t have the word “Cancelled”.

There is a written word "CANCELLED".

It is used to stop a payment in case you have insufficient funds against a cheque, when your signed cheque is misplaced or if you want to stop a payment immediately for any other reason.

It is just used as evidence of your bank account. provides information such as the account holder's name, account number, the bank's name, IFSC code, MICR code, and the branch's address.

The bank may charge a small fee when you use a STOP payment cheque.

There is no fee involved.

The cheque is used for holding a transaction.

The bank can’t use it for any transaction or to stop any transaction.

The cheque has a signature and is used as an order to stop payment.

Signing the cancelled cheque is not required.


Now that you know how to issue a cancelled cheque and its uses, you can enjoy a smoother banking experience. You can also get the benefits of shopping on Easy EMIs just as easily from the Bajaj Finserv EMI Network!

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Conclusion

In conclusion, cancelled cheques play a crucial role in financial transactions in India. While they may seem like a simple piece of paper, they serve as proof of payment and can be used as evidence in case of any disputes arising from the transaction. It is recommended that individuals keep a record of all cancelled cheques to ensure that they have evidence of their financial transactions. Moreover, it is important to remember that a cancelled cheque is not the same as a lost or stolen cheque, and appropriate measures should be taken in case of any such incidents. Therefore, it is crucial to understand the importance of a cancelled cheque in India and to keep them safely for future reference.

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-qualified limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

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Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

How do I get a cancelled cheque?

You can use a fresh cheque to write a cancelled cheque by drawing two parallel lines across the cheque and writing the word “cancelled” in block letters in between the lines. Do ensure that you don’t sign the cheque and that the parallel lines do not cover details, such as account number, account holder's name, MICR code, name, and branch address of the bank.

How is a cancelled cheque written?

To write a cancelled cheque:

  1. Write a cheque payable to yourself or the required entity
  2. Cross the cheque with two lines to make it non-negotiable
  3. Clearly write "CANCELLED" or "VOID" on it
  4. Sign the cheque as usual
  5. Keep a record, noting the date and purpose
  6. Store it securely as it contains sensitive banking information
When does one require a cancelled cheque?

A cancelled cheque is used as proof of your bank account. It can be used for various purposes like applying for a loan, credit card, or the Insta EMI Card.

Is it possible for my bank to cancel my cheque?

Yes, your bank can cancel a cheque in the following situations:

  1. Stop payment request: If you request to stop payment on a specific cheque, the bank can cancel it to prevent cashing or deposit.
  2. Fraud suspicions: If the bank suspects or confirms fraudulent activity involving a cheque, they may cancel it.
  3. Account closure: When you close your bank account, any linked cheques become invalid and are effectively canceled.
  4. Cheque expiry: Some cheques have expiration dates, and once past that date, they are canceled.
  5. Insufficient funds: If there are insufficient funds in the account, the cheque will bounce and be canceled.

Canceled cheques cannot be cashed or deposited, and you may need to issue a new one if the payment is still necessary. Keep in mind that banks may charge a fee for stop payment requests.

Can I cancel the cheque using red ink?

It is advisable to use either blue or black ink to cancel a cheque.

Can I block a cheque leaf online?

Yes, you can often block a cheque leaf online through your bank's online banking portal or mobile app, provided they offer this service.

Can anyone withdraw money with a cancelled cheque?

No, the cancelled cheques can’t be used for any transaction. It is only used as evidence of your bank account.

Should a cancelled cheque be blank?

A cancelled cheque is a type of cheque that has already been paid by the bank and has the word 'Cancelled' manually written across it. It is distinguished from other cheques by two diagonal lines drawn from one end to the other. A cancelled cheque is called 'blank' because it can no longer be used as a payment instrument. Instead, it is often used as proof of payment and to provide bank account details. Although it is considered blank, a cancelled cheque can be valuable in some situations where bank account verification is required. Overall, cancelled cheques are a common financial instrument in India and are often used for various financial transactions.

What merchant categories can the EMI Card be used for?

You can use the Insta EMI Card to shop from merchants across various online e-commerce platform and over 1.5 lakh offline partner stores, including:

Is a signature required on a cancelled cheque?

A signature is not required on a cancelled cheque. The purpose of a cancelled cheque is to provide proof of your existing bank account, and the act of crossing it with two parallel lines and writing ‘cancelled’ renders it non-negotiable.

Why do companies ask for a cancelled cheque?

Companies ask for a cancelled cheque as a verification tool. It serves as a document that confirms the authenticity of your account details, which they may need for setting up electronic clearing services like credit transactions, direct deposits, or to ensure the account belongs to you.

Why cancelled cheque is required?

A cancelled cheque is required for various reasons, primarily related to proof of payment and financial transactions

Do we need to sign on cancelled cheque

No, a signature is not typically required on a cancelled cheque

What does upload cancelled cheques mean?

Uploading cancelled cheques means submitting a scanned or photographed image of a cancelled cheque electronically. This is often done for online transactions, document verification, or to provide proof of payment digitally.

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