How To Cancel a Cheque?

Finance Guru Speaks: This article will guide you on how to Cancel a Cheque.

Some examples where Cancelled Cheques are primarily required are: Providing your bank details for modifications in a Mutual Fund House, starting SIP in a Mutual Fund, formalities of ECS setup, etc.

In order to cancel a cheque, you just need to write "Cancelled" between two cross lines, as shown below:-

Cancelled Cheque

No need to put your signature on the cheque. Also, you can use the photocopy of the cancelled cheque. Please check with the concerned authority before doing that so that you can save your original cancelled cheque leaf. :)

Please see, how a cheque is being cancelled. Please note, that I've hidden the confidential details like Account Name, Account No., MICR, IFSC, Cheque No., Branch Address, and Branch Name because this example is just for demonstration.

But for actual use, just write "Cancelled" in-between two lines as shown below and don't scratch any other details on the cheque and no need to put your signature.

Remember, whenever a cheque is cancelled, it loses all its transactional power. It becomes a Void/Dummy cheque which is used for setting up ECS for SIP in Mutual Fund houses or updating your bank details records like IFSC Code, MICR Code etc. with the concerned authorities.

Also Read:

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How To Invest In PPF Through SIP Using OnlineSBI Account?

Finance Guru Speaks: Yes, you can invest in PPF through SIP or Systematic Investment Plan as you normally do in Mutual Funds Investments. I will show how you can do it through your State Bank of India Bank Account. As you are aware that PPF can be opened in any Nationalised Bank and hence, PPF can be opened in SBI Branch.

Make sure you have your Savings Bank account along with PPF Account opened in your SBI Branch and Internet Banking is already enabled for your account.

You can read:

How To Open SBI Internet Banking Facility!

 

You can start SIP in PPF through Standing Instructions feature provided by SBI Internet Banking.

Please follow below screenshots to set SIP in PPF:-

1.      Open your SBI Internet Banking Account using your username and password. Navigate to Requests > Standing Instruction >View/Cancel page as shown below:-

Online SBI Standing Instructions

  2.      Click on Add button & Select the Transaction Type as Fund Transfer and click on Submit button, as shown below:

OnlineSBI Setting Standing Instructions

3.      Select the PPF Account where the amount has to be deposited through SIP from your Savings Bank Account. Enter the Amount you want to transfer to PPF on regular basis, as shown below:

PPF Through SIP

4.      For Monthly SIP for 1 Year, Set the values as shown below and then click on Submit button. Likewise, you can set SIP on bi-monthly / Quarterly / Half-yearly basis:

OnlineSBI PPF Monthly SIP

Congratulations!! You have successfully started SIP facility for your PPF Account.

Images Courtesy: SBI Internet Banking website

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Want To Know About PAN Card?

Finance Guru Speaks: Below pointers will provide you information on the importance of PAN card.

• Why has PAN been made compulsory for transacting in Mutual Funds?
  Securities and Exchange Board of India (SEBI) vide their circulars MRD/DoP/Cir-05/2007 dated April 27, 2007, and MRD/DoP/Cir-08/2007 dated June 25, 2007, has made Permanent Account Number (PAN), the sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction, effective July 2, 2007. Hence, all investors would compulsorily have to provide their PAN details along with the original PAN card for verification.
• Which category of investors needs to provide PAN?
  The requirement of PAN applies to -
• All unitholders in the folio, including Guardian(s)
• Non-Resident Indian (NRI) investors as well
• Power of Attorney (PoA) holder,
• Lien Holder

• Do I need to submit PAN for all types of investments?
  Yes, PAN needs to be submitted for all investments viz. New Purchases, Additional Purchases, Switches. New SIP registrations and in the event of Transmission of units or upon Minor becoming Major.

How To Open Fixed Deposits (FD) in SBI Through Internet Banking?

Finance Guru Speaks: Wondering how to open online Fixed Deposits (FDs) in SBI through Internet Banking? No worries, this article will guide you. No need to stand in long queues and waste your precious time in the branch. You can avail of the facility with ease and it’s just a few clicks away!

Steps to follow to open Fixed Deposits (FD) or eTDR in SBI Through Internet Banking:-

1. Login to your SBI Internet Banking Account.

OnlineSBI Login Page

2. Go to e-Fixed Deposit  -> e-TDR/e-STDR(FD) and select e-TDR / e-STDR (Fixed Deposit) option. Now click on the Proceed button. It is shown below:-

Click to enlarge - OnlineSBI FD or eTDR Account

 

Here, STDR means FD Account Cumulative - Interest paid at maturity.

TDR means FD Account Non-Cumulative - Interest paid at selected intervals.

Fill in the details on the next page and submit it to open an FD Account. Let me know if you face any difficulties in filling up the details.
 
3. Once your FD account opens, you can check its details under the section Deposit Accounts in My Accounts > Account Summary page, as shown below:-

Click to enlarge - Open Online FD Account in SBI

 

Important details provided by Bank:

- e-TDR/e-STDR with an additional rate of interest for Senior Citizens will be issued if the option for "Senior Citizen" is selected by the customer and the age of the customer is 60 Yrs or above, on the date of creating the fixed deposit, as per the date of birth recorded with the Bank. The minimum days and minimum amount applicable for an additional rate of interest for senior citizens will be as per the Bank's policy. "However, no additional rate of interest for senior citizens is provided under NRE and NRO term deposits."
- As per section 206AA introduced by Finance(No.2) Act 2009 effective April 01,2010, every person who receives income on which TDS is deductible shall furnish his PAN, failing which TDS shall be deducted at the rate of 20% in case of Domestic deposits and 30.90% in case of NRO deposits.
- Additionally, in the absence of PAN, Form 15G/H and other exemption certificates will be invalid even if submitted & penal TDS will be applicable.
- NRO depositors are required to submit self-declaration / tax residency certificates for availing concessional TDS facility under DTAA.
- Kindly visit your SBI branch with your PAN card (original and copy) to get the same updated in the bank records.
- e-TDR/e-STDR can be opened up to 10 years/3650 days only.
- e-TDR/e-STDR can be opened only if the mode of operation is 'Single' or 'Either or Survivor' or 'Any A/c Hold or Surv' or 'Power of Attorney' or 'Letter Of Authority' or 'Sole Minor-Above 10 Year' or 'Nat Guard Of Minor' or 'Former or Survivor' and 'Latter or Survivor'.
- For e-TDR, the interest will be credited to the savings account selected above.
- For e-TDR, if the tenor is less than or equal to 180 days, interest will be paid at maturity.
- For e-TDR, if the tenor is within 181 to 365 days (including both days), interest will be paid quarterly.
- For e-STDR, interest will be paid at maturity.
- Interest paid at monthly intervals will be at a discounted rate of interest.
- NRO depositors are required to submit self-declaration/tax residency certificates for availing of concessional TDS Facility under Double Taxation Avoidance Agreements (DTAA).
- e-TDR/e-STDR will be disposed of according to the Maturity Instruction given at the time of opening the deposit. In case of auto-renewal, the deposit will be renewed for the same duration for which it was originally kept, at the rate of interest prevailing on the date of renewal for that duration. If auto-renewal instructions are given, the instructions will continue to be executed till terminated by the account holder
- Although you are submitting the instructions online, the account itself will not be opened in Internet Banking but in Core Banking, which is the accounting system of the Bank. Hence the rules about the account as applied in Core Banking will apply to this deposit.
- Interest paid on premature withdrawal of term deposits could be less than the contracted rate, as per the applicable rule on the date of premature payment. To know the current rules, please click on Domestic term deposit, NRO term deposit & NRE term deposit

e-TDR or FD FAQs by Bank: Follow this Bank link

Also Read:

More Articles on SBI

Images Courtesy: SBI Internet Banking website

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How To Open Online Recurring Deposit (RD) Account in SBI Through Internet Banking?

Finance Guru Speaks: Yes, you can open Recurring Deposits in SBI through Internet Banking. No need to stand in long queues and waste your precious time in the branch. You can avail of the facility with ease and it’s just a few clicks away!

Steps to open Online Recurring Deposits through SBI Online Banking:

1. Login to SBI Internet Banking Account.

OnlineSBI Login Page

2. Go to Deposit & Investment -> Fixed Deposit, as shown below:-

Click to enlarge - Open RD Account SBI Online Banking

3. Click on Recurring Deposit (e-RD) link as shown below:-

Click to enlarge - Open RD Account SBI Online Banking

4. Click on Recurring Deposit (e-RD) link as shown below:-

Click to enlarge - Open RD Account SBI Online Banking

5. Under Open new A/c section, fill in the details like RD Amount, RD duration, Set Standing Instruction, etc., and click on Submit button, as shown below:-

Click to enlarge - Open RD Account SBI Online Banking

6. Once your RD account opens, you can check its details under the section Deposit Accounts in My Accounts > Account Summary page, as shown below:-

Click to enlarge - Online RD Created in SBI

Congratulations!! You have successfully opened your eRD Account using SBI Online Banking facility.


Important details provided by Bank:

- e-RD with an additional rate of interest for Senior Citizens will be issued if the option for "Senior Citizen" is selected by the customer and the age of the customer is 60 Yrs or above, on the date of creating the recurring deposit, as per date of birth recorded with the Bank. The minimum tenure and minimum amount applicable for additional rate of interest for senior citizens will be as per Bank's policy. "However, no additional rate of interest for senior citizens is provided under NRE and NRO term deposits."

- Kindly visit your SBI branch with your PAN card (original and copy) to get the same updated in the bank records.

- e-RD can be opened for a minimum of 1 year and a maximum of 10 years.

 - e-RD can be opened only if the mode of operation is 'Single' or 'Either or Survivor' or 'Any A/c Hold or Surv' or 'Power of Attorney' or 'Letter Of Authority' or 'Sole Minor-Above 10 Year' or 'Nat Guard Of Minor' or 'Former or Survivor' and 'Latter or Survivor'.

- For e-RD, interest will be paid at maturity.

- The Recurring Deposit for 555 days and 1000 days tenors are not available.

- Although you are submitting the instructions online, the account itself will not be opened in Internet Banking but in Core Banking, which is the accounting system of the Bank. Hence the rules about the account as applied in Core Banking will apply to this deposit.

- Interest paid on premature withdrawal of term deposits could be less than the contracted rate, as per the applicable rule on the date of premature payment. To know the current rules, please click on Domestic term deposit, NRO term deposit & NRE term deposit

Also Read: More Articles on SBI

Images Courtesy: SBI Internet Banking website

If you like my work, then you can support me by subscribing to my YouTube Channel - FINANCE guru SPEAKS, and sharing this article over your Social Networks. Thank you. ✌