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.1