What If Amount In Words And Figures Do Not Match In A Cheque?

As we all know there are two places on a cheque where the amounts are written. The one amount is written in figures or in numbers and the other with words. The amount written in numbers is called courtesy amount and the amount written in words is called as legal amount. They are written in two ways just to cross verify if the amount written is correct, as someone can commit a mistake by writing Rs. 10000 instead of Rs 100000 in haste. So, if you are a banker, it is important to read both the amounts in words and figure while paying an amount with a cheque. 

Now the question is what will happen if the amount written in words and figures do not match in a cheque? According to the banking rules, the legal amount or the amount written in words is considered correct and to be paid by the bank. But, this is not a common practice in Indian Banking system. To avoid any future dispute or risk, banks generally reject this type of cheque and ask their customer to bring new cheque with same amount in both words and figures. 

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