How to write an amount in words on a cheque
Writing an amount in words looks like a formality, but it's the part of a cheque that protects you. It's far harder to alter than digits. Here is how to write it correctly in the Indian number system, and what to avoid.
The Indian number system
Group the digits the Indian way before you start. After the first three digits from the right, the commas come every two digits.
| Figures | In words |
|---|---|
| 1,000 | One Thousand |
| 10,000 | Ten Thousand |
| 1,00,000 | One Lakh |
| 10,00,000 | Ten Lakh |
| 1,00,00,000 | One Crore |
Examples
| Figures | In words |
|---|---|
| ₹2,500 | Rupees Two Thousand Five Hundred Only |
| ₹1,00,000 | Rupees One Lakh Only |
| ₹1,25,450.50 | Rupees One Lakh Twenty Five Thousand Four Hundred Fifty and Fifty Paise Only |
How to fill in the cheque
- Start at the far left of the line. Write "Rupees" right at the start, leaving no gap where a word could be added in front of the amount.
- End with "Only". It marks the end of the amount, so nothing can be added after it. Then draw a line through any space left over.
- Write the figures close to the ₹ sign, with commas, and finish whole amounts with "/-", like this: ₹2,500/-. This leaves no room to add a digit in front or behind.
- Check that the words and figures match. If they differ, the law treats the words as the amount (Section 18 of the Negotiable Instruments Act), but banks usually return such a cheque, so it costs you time either way.
Mistakes that get a cheque returned
- Corrections. Under the Cheque Truncation System (CTS), banks process an image of your cheque, and RBI's rules don't allow changes to details such as the payee's name or the amount. If you make a mistake, tear the cheque up and write a new one.
- An old date. A cheque is valid for three months from the date on it, so one older than that is returned as stale.
- A signature that differs from the bank's records. Sign the way you did when you opened the account.
- Different pen colours. Use one pen for the whole cheque. Dark blue or black ink shows up clearly on the scanned image.
Two habits that make cheques safer
- Write "A/C Payee". Draw two parallel lines across the top-left corner and write "A/C Payee" between them. The money can then only go into the named person's bank account, so a lost cheque can't be cashed over the counter.
- Don't sign blank cheques. Anyone holding one can fill in any amount. If you must leave a cheque with someone, fill in the payee and write a maximum amount.
General information based on the Negotiable Instruments Act, 1881 and RBI's Cheque Truncation System rules. Your bank can confirm its own requirements. More on rbi.org.in.