Cheques have a lot to do these days as well. I am telling you this because despite having so many payments methods. There are a lot of things that can be done with the help of the cheques and the demand drafts only.
Once you have issued a cheque to someone. Then you also have an option to stop the payment of the cheque. This can be done by you.
To do it you will have to communicate with your bank and tell it that you have decided to stop the payment.
But how?
How can you communicate with your bank and stop the payment?
Well, there are multiple methods that you can use.
But there are a few things you have to keep in mind before you request your bank to stop the payment.
What happens when a Cheque Payment is Stopped?
When the customer who has issued a cheque requests the bank to stop the cheque payment. The bank dishonors the cheque when the payee submits it for clearing.
Basically, the issued cheque will be dishonored by the bank. And once the bank stops the cheque you can not resume the payment in any way. You will have to issue a new cheque again.
Does the Bank Charge for this Service?
Yes, the banks charge the customer whenever he or she requests to stop the payment of any cheque. The charges vary from bank to bank.
You can find the exact charges by referring to the schedule of charges page. This page can be found on the official website of your bank.
Also, keep in mind that the charges that are mentioned in the schedule of charges page don’t include GST. (80% of the time)
So to get the exact idea check if you find anything such as “Including GST” or “Excluding GST” on the schedule of charges page.
When can a Cheque Be Stopped?
A cheque’s payment can be stopped only if it is not yet cleared by the bank. Once the amount mentioned on the cheque is deducted from your bank account.
The bank can not help you in any way. You can stop the payment only if your cheque is not yet cleared. So you should take prompt action as soon as you decided to stop the payment.
What are the Requirements to Stop Cheque Payment?
There are not many requirements. You just need to have the cheque number whose payment you want to stop. This number is mentioned on the cheque leaf.
And if you have multiple cheques to be stopped. Then you will need the starting cheque number and the ending cheque number.
If you have this detail with you then you can easily request your bank to dishonor the cheque.
Do I have to Give a Reason to the Bank?
Yes, you need to provide a proper reason to the bank. In most banks, it is a must to provide a reason why the issue of cheque wants to stop the payment.
You will be provided with a list of reasons to choose from. All you have to do is select the one which is most appropriate for your case.
What is the Process to Stop the Payment?
If you wish to complete the process online. Then you can make use of the internet banking website. And the official mobile banking app of the bank.
There will be a separate menu in both internet and mobile banking which is termed as “Cheque Book Services”.
You just have to open that section and they select “Stop Cheque Payment”. After that select, your bank account number, enter the cheque number, and select the reason why you are submitting the request.
Here you have to agree to the terms and conditions of the bank. So I recommend you spend some time reading and understanding the terms and conditions.
Once you are done with it just click on the Submit and you are done with it. Whatever applicable charges will be deducted from your account balance.
If you want to learn the steps to stop the payment specific to your bank. Then you can do that on Bankk.
Is there any Other Way?
Yes, there is one more way of doing it. Collect your cheque details and visit the nearest branch of your bank and submit your request there.
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