Normally, we write cheques to pay other people where they can withdraw the amount. A self cheque is a type of cheque that you write to withdraw funds from your own bank account and deposit it into another account or encash it. It is commonly used when you want to make a payment or transfer money from your own account to another account without the need for any other third person.
How to withdraw?
To withdraw money using a self cheque, you can follow these steps:
- Fill in the details : write the date on the space provided in the cheque. Then, in the “Pay” or “Pay to the Order of” space, write your own name. You need to write your correct full name and name as it is written when you open your your account.
- Mention the amount: In the “Amount” space, write the amount of money you wish to withdraw. Write both the numerical figure and in words also. It will avoid confusion.
- Signature: Don’t forget to sign the cheque at the bottom right. Make sure that the signature matches the signature you have on record with your bank.
- Submit the cheque: Take the self cheque to your bank and submit it to the teller or you can also use the designated self-service machine. Provide any additional identification or verification if requested by the bank.
- Verify and receive the funds: The bank will verify the cheque and your account details. Once confirmed, the bank will proceed with the withdrawal and provide you with the amount written on the cheque.
How to write a self cheque?
These are the step by step guidelines to write a self cheque:
- Fill in the current date on the cheque.
- Write your full name as the payee, specifying that it is a self cheque.
- Mention the amount in both words and figures to avoid any confusion.
- Sign the cheque at the bottom right corner, as you would with any other cheque. Your signature should be the same as you sign while opening your account.
- Ensure that the cheque is properly filled out, including the date, payee, and amount.
It’s important to note that when writing a self cheque, you are essentially withdrawing funds from your own bank account. Make sure you have sufficient funds in your account to cover the amount you are writing on the cheque. Additionally, it’s a good practice to keep a record of the self cheque and any corresponding transaction details for your own reference and reconciliation purposes.
Advantages of Self Cheque:
- Control and Flexibility: Writing a self cheque allows you to have complete control over the amount you withdraw from your account. You can specify the exact amount you need. You can withdraw more amount than you can from an ATM.
- Convenience: You don’t need to take a token to withdraw your money as you do when you withdraw money through withdrawal form. Self cheques can be used to transfer funds between your own accounts or to make payments to yourself. This can be particularly useful if you need to transfer funds between different bank accounts.
Disadvantages of Self Cheque:
- Risk of Loss or Theft: Self cheques, like any other cheque, can be lost or stolen. If a self cheque falls into the wrong hands, it can be used by someone else to withdraw funds from your account. It is important to handle self cheques with care and keep them secure.
- Inconvenience for Recipients: When you write a self cheque to make a payment to someone else, they may need to go through additional steps to deposit or cash the cheque. Some banks may require the recipient to provide identification and complete a verification process before the funds can be accessed.
- Limited Acceptance: Self cheques may not be accepted by all businesses or individuals as a form of payment. Some entities prefer other payment methods such as electronic transfers or credit/debit cards. It is important to confirm with the recipient if they accept self cheques before using them for payments.
Self cheque limit
The self cheque limit varies from bank to bank. It also depends on the type of account you hold. Generally, banks set a maximum limit for self cheques in order to prevent misuse or unauthorised withdrawals from your account. It is common for banks to set a limit ranging from a few thousand to a few lakhs of the account’s available balance.
To know the specific self cheque limit for your bank and account, it is advisable to check with your bank directly. You can reach out to the customer service or visit the bank branch to inquire about the self cheque limit applicable to your account.
EPFO
EPFO stands for Employees’ Provident Fund Organisation, which is a statutory body established by the Government of India under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It administers and regulates the Employees’ Provident Fund (EPF), a social security scheme for employees in India.
The primary objective of EPFO is to ensure financial security and retirement benefits for employees. It manages and maintains the EPF, a fund where both employees and employers make regular contributions. The contributions are based on a fixed percentage of the employee’s salary and are aimed at providing a lump sum amount at the time of retirement or in case of other contingencies like disability or death.
Benefits of EPFO establishment
The EPFO establishment has several benefits including:
- Retirement savings: EPFO helps employees build a retirement corpus by ensuring regular contributions from both the employee and the employer.
- Financial security: EPFO provides a financial safety net for employees by offering benefits in case of contingencies like disability, death, or medical emergencies.
- Social security: EPFO aims to provide social security to employees and their families by offering benefits and financial assistance during various life stages.
- Tax benefits: Contributions made to the EPF are eligible for tax benefits under the Income Tax Act, making it a tax-efficient investment avenue.
- Centralised administration: EPFO provides a centralised platform for managing and tracking contributions, ensuring transparency and accountability in the process.
