Self Cheque for Withdrawal: As someone who frequently withdraws cash, you may have wondered how to write a self-cheque for withdrawal. Writing a self-cheque can be a convenient way to access cash without going to an ATM. However, following the proper procedure when writing a self-cheque is crucial to avoid any errors or potential fraud. In this blog, we will provide a well-explained step-by-step guide on how to write self cheque, how to fill cheque for withdrawal, and how to withdraw cash from cheques.
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What is a Self Cheque?
There are different types of cheques that you can use in different situations. Different types of cheques include Bearer Cheque, Order Cheque, Crossed Cheque, Open Cheque, Post-Dated Cheque, Stale Cheque, Traveller’s Cheque, Banker’s Cheque as well as Self Cheque. Let’s understand what a self cheque is and what its use is.
Use of self Cheque: A self check is used when a person or drawee wants to withdraw cash from his bank for his own use. A self check has the word “Self” written on it on the name column. These cheques should be kept carefully because if you lose them, the person who gets them can easily withdraw money from your bank.
Mostly Self-cheques are used by people for their own cause. A self-cheque can only be encashed from the account holder’s bank. Working individuals may need to write cheques sometimes. For freelancers, employees, and business owners working either from their own office, WFH, coworking spaces, or flexible options like coworking for a day this information is a must to know.
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What are the Steps to Write a Self Cheque?
Mentioned below is an easy step-by-step guide on how to fill self cheque, how to write cheque for self and what to write on cheque for cash withdrawal.
Step 1: Fill in the Date
The first step in the self cheque withdrawal rules is to write the current date in the designated space at the top right corner. This is because cheques have a validity period, so banks typically do not accept post-dated cheques. A post-dated cheque is a cheque on which the issuer has written a date in the future; hence, banks will only accept such cheques for payment on the date indicated on the cheque.
By writing the current date on the cheque, you are ensuring that the cheque is valid and can be processed by the bank. The date on the cheque is also important in case there is any dispute over the payment or if the cheque bounces due to insufficient funds in the account.
Step 2: Write the Amount in Figures
The second step in how to fill cheque for self withdrawal is to write the amount you wish to withdraw in figures on the line next to the word “Rs.”. Ensuring that the amount you write is accurate and matches the amount you intend to withdraw is important. This will help to avoid any errors or discrepancies in your transaction.
Step 3: Write the Amount in Words
The third step in withdrawing money through cheque is to Write the cheque amount in words in the space provided. This step is crucial as the bank will use the amount written in words to verify the amount on the cheque in case of any discrepancies or errors. It is vital to ensure that you write the amount in clear and legible handwriting, as this will provide clarity and understanding. Please take your time to write the amount in words accurately to avoid any delays or issues with your transaction.
Step 4: Write “Self” in the Payee Name Section
When filling out the “Pay” field on the cheque, if you intend to receive the payment yourself, please write the word “Self” or your name in that section. This indicates that the cheque will be paid to you and only you. It is important to ensure that you write your name on your bank account to avoid any discrepancies or issues with the transaction. If you choose to write your name instead of “Self,” make sure that it matches the name on your bank account exactly. This will help ensure that the cheque is processed correctly and the funds are deposited into your account without any delays or issues.
Step 5: Sign the Cheque
After filling in all the necessary details on the cheque, including the payee’s name and amount, it is important to sign the cheque. The signature should be written on the line provided at the bottom right corner of the cheque. This step is critical, as your signature on the cheque confirms that you are the rightful owner and authorizes the bank to release the funds.
It is vital to ensure that you sign the cheque clearly and legibly, using the signature you registered with your bank. If your signature has changed or you still need to register a signature with your bank, you may be required to update your signature before the cheque can be processed. Your signature is a critical aspect of the process, so failure to sign the cheque correctly may result in delays or even the rejection of the cheque by the bank.
Step 6: Cross the Cheque
If you want to make the cheque more secure, you can cross it by drawing two parallel lines on the left-hand corner of the cheque. This is an optional step and depends on your preference. Crossing a cheque means that the cheque can only be deposited into the account of the person whose name is on the cheque. Crossing your cheque will provide an additional layer of security, preventing the cheque from being cashed at a bank counter or by someone, not the intended recipient.
It is important to note that a cheque cannot be uncrossed once a cheque has been crossed. Therefore, if you want to give the recipient the option to cash the cheque at a bank counter, you should not cross the cheque. Crossing the cheque is a simple and effective way to make it more secure. Ensuring that the cheque is only deposited into the intended recipient’s account is recommended.
Step 7: Submit the Cheque
Once you have filled in all the necessary details on the cheque, including the payee name, amount, and signature, you can submit the cheque to your bank for cash withdrawal through cheque. To do this, take the self-cheque to your bank and submit it with the necessary identification documents. The bank usually asks for your ID proof, including a passport, driver’s license, Aadhar card, or any other government-approved ID. They may also ask for additional documents, such as a bank passbook or statement, to verify your account details.
Ensure you have all the necessary documents when you go to the bank, as failure to provide the required identification may result in the cheque being rejected. Once you have submitted the cheque and the necessary documents, the bank will process the transaction and deposit the funds into your account. Note that the time taken for the funds to be credited to your account may vary depending on the bank’s processing time and other factors, such as public holidays or weekends.
What are the Features of a Self Cheque?
The features of a self-cheque include:
1. Drawer and Payee are the Same:
The person who writes the cheque (drawer) and the person in whose favor the cheque is drawn (payee) is the same individual. The term “self” is written in the payee’s name field.
2. Use for Personal Withdrawal:
Self-cheques are often used when the drawer wants to withdraw cash from their own bank account. Instead of writing the actual name, the drawer writes “self” to indicate that the funds are to be withdrawn by the account holder.
3. Withdrawal by Account Holder:
A self-cheque is a way for the account holder to withdraw money from their account for personal use. It is similar to drawing cash from an ATM but is done through a physical cheque.
4. Need for Signature:
The drawer’s signature on the cheque is crucial for authentication. It is a security measure to confirm that the cheque is authorized by the account holder.
5. Bank Account Details:
The cheque should contain accurate details such as the account number, bank name, and branch to ensure proper identification and linkage to the correct account.
6. Validity Period:
As per the Reserve Bank of India (RBI) guidelines, cheques are generally valid for a period of three months from the date of issue. After this period, the cheque may be considered stale, and the bank may refuse to honor it. However, it’s advisable to check with the specific bank’s policies as they may have variations.
7. Crossing Options:
In India, crossing a cheque is a common practice for enhancing security. Two types of crossings are prevalent: “General Crossing” (//) and “Account Payee Crossing” or “Not Negotiable Crossing” (A/C Payee Only). Crossing prevents the cheque from being encashed at the counter and ensures that the funds are deposited directly into the account.
8. Bank’s Stamp:
The bank stamp on the self cheque indicates that the cheque has been presented and processed. The bank may affix its stamp on the cheque as part of the processing and clearance procedures.
It’s recommended to consult with the specific bank where the account is held to understand any unique policies or variations in practices related to self-cheques. Banking regulations and practices may evolve, and it’s important to stay informed about any updates or changes that may affect cheque transactions in India.
Self Cheque Withdrawal Limit
The majority of Indian banks have established a daily cheque withdrawal restriction of INR 1 lakh. Usually, self-cheques/self-use or self-addressed checks are subject to this cap.
Bank customers often pay more when they live in major cities. As a result, such customers receive larger cash withdrawal limitations from the RBI and banks. Customers of the same bank with locations in Tier I, II, and III cities as well as semi-rural and rural areas have lower withdrawal restrictions in comparison.
Cash Withdrawal Limit Based on the Type of Account
Additionally, bank limits are based on the kind of account you have. The withdrawal limitations for current account holders are higher than those for basic savings account holders. Banks, however, set greater cash withdrawal caps for users of priority savings accounts.
Cash Withdrawals for Branch-Versus Non-Branch Transactions
When you make a cash withdrawal from your local branch, banks often offer higher limitations. If you want to withdraw money from a branch that is not your home, the withdrawal limitations are often lower.
Cash Withdrawal Limits for Third Party Transactions
The limit would be lower if a friend or family member withdrew money on your behalf. For instance, a self cheque has an INR 100,000 withdrawal cap. The cash withdrawal cap would be INR 50,000 if your friend was the bearer of the cheque, though.
Depending on the withdrawal method one must adhere to bank withdrawal restrictions. Despite the cash withdrawal restrictions, it is clear that there are a variety of options to access the money in one’s account, which makes banking simple.
To Conclude
Writing a self-cheque for withdrawal can be a simple and convenient way to access your funds. The process involves filling out the cash withdrawal cheque with your name as the payee and the amount you wish to withdraw. Ensuring you write the details legibly and accurately is crucial to avoid any issues during cheque processing.
While writing a self-cheque, one must try to keep the checkbook secure and protected from any unauthorized access is also essential. This can include storing it safely or locking it up when not in use. Additionally, you should never disclose your cheque details to anyone not authorized to use them, as this can result in unauthorized transactions and potential financial loss.
To further protect yourself, it is recommended to monitor your bank account activity regularly. Report any suspicious transactions or unauthorized access to your bank immediately. By taking these steps, you can ensure that your self-cheque transactions are safe, secure, and hassle-free.
FAQs on Self Cheque
Read the following FAQs thoroughly before you write and deposit your self-cheque.
What is a self-cheque?
A self-cheque is a cheque you write to yourself from your bank account. You can use a self-cheque to withdraw money from your account or to transfer funds to another account you own.
Why would I need to write a self-cheque?
You might need to write a self-cheque to withdraw cash from your bank account or transfer money to another account you own, such as a savings account.
What information do I need to include on a self-cheque?
To write a self-cheque, you must include your name as the payee, the amount you want to withdraw or transfer, the date and your signature.
Can I write a self-cheque for any amount?
You can write a self-cheque for any amount available in your bank account. However, if you want to withdraw a large amount of money, you may need to make special arrangements with your bank in advance.
Can I use a self-cheque instead of an ATM card to withdraw money?
You can use a self-cheque instead of an ATM card to withdraw money from your bank account. However, you must visit a bank branch and present the cheque to a teller to complete the transaction.
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