đź“‘ How to write a cheque
Introduction
With the intention of enhancing learner financial experience at HBMSU, an awareness on “How to successfully write a cheuqe” was developed. The awareness provides guidance to learners on how to write cheuqes in the correct format. It also explains in detail the steps required to complete each section of the cheque and highlights the main reasons for returned cheques and how to avoid them.
By following these guidelines; learners will recognize the techniques used in writing cheques as well as avoid the common mistakes made to ensure the successful clearance of the cheque.
- UAE Central Bank terms and conditions are applied.
- HBMSU terms and conditions are applied
Step 1
Make sure that the cheque book available with you contains new cheques as per UAE Central Bank new policy.
All new cheques should have a Security Line Band. Cheques without a Security Line Band will not be accepted by any bank and will be returned.
Please contact your bank directly for any further information.
* UAE Central Bank Security Line Band policy was effective as of  01st.March.2012
Step 2
Always write your cheque using permanent ink to prevent anything from being altered or changed.
Step 3
Complete each section of the cheque carefully:
(a) Â Beneficiary name
(b) Â Date
(c) Â Amount in figures and words
(d) Â Signature
(a) Beneficiary name: Write a clear description of the full name of the university or its abbreviation.
(b) Date:Â The date that the cheque will be presented to the bank
- Write a clear & valid date format.
- All cheques are presented to the bank on their due dates and amount will be deducted from your account.
- If you choose to go for the installment method of payment (Cash & Cheques), please write down the exact dates that are given by the university which are announced in the Payment and Installment Schedule.
(c) Amount in figures and words:Â The amount to be deducted from your account.
Clearly mention the exact amount to be deducted from your bank account and make sure that the amount in words is matching with the amount in figures.
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(d) Signature:Â the authorized signatory shall sign above the line at the bottom right of the cheque. Banks will not accept cheques with missing signature
Other tips
Always use one language in writing the cheque (either English or Arabic).
Alterations:Â A change or adjustment in writing the cheque.
Please don’t make any changes or adjustments in the cheque as it will not be accepted by the bank.
Reasons for returned cheque
- Security line band missing
- Insufficient funds
- Account closed
- Drawer’s signature differs
- Amount in words and figures differs
- Alteration requires drawer’s full signature
Disclaimer
- The above mentioned reasons for returned cheques are general guidelines provided to learners however; cheques can be returned for other reasons specified by the bank.
- The above mentioned reasons are determined by the bank and HBMsU is not responsible for any returned cheque reason that is provided by the bank.
- Learner shall hold full responsibility of addressing the cheque and its entire contents.
External ResourcesÂ
