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Importance of Signature on a Cheque

Last updated on Apr 8, 2022

The signature on a cheque means that the person who has signed it is giving permission to the bank to take money out of his or her account. When you give a cheque to the bank, keep in mind the following:

  • Make sure the signature of the person who issues the cheque matches with the signatures in his bank records.
  • If your signature on the cheque mismatches with your signature in the bank records, then the bank can fine you for this.

A signature mismatch can attract a penalty if the bank decides to return your cheque.

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