why should the amount be written in words on the cheque
Answers
Answer:
so that if somehow there a slight mistake in the numeric they will check this
Answer:
This is an interesting question I have shown the answer below:-
n India:
It is the practice of writing the amount in the cheque
in words and
in figures
This can be also called as a double check.
Years back, commercial banks used to return the cheques when the amount mentioned in words differ from the amount mentioned in figures.
However, recently necessary guidelines were modified in Negotiable Instruments act 1881 and according to this, when there is a difference between the amount mentioned in words and amount mentioned in figures, the amount mentioned in words has to be taken into account and the cheque should be paid accordingly
However, many commercial banks are not willing to take risks in such cases and where there is mismatch between the amount mentioned in words and the amount mentioned in figures, they used to return the cheques for the reason - Amount mentioned in words and figures differ
Step-by-step explanation: