(1) The cheque book in use may be made over to the Accountant for writing cheques.
(2) No cheque shall ordinarily be signed unless required for immediate delivery to the person to whom the money is to be paid. No signed cheques shall be retained in the office except under exceptional circumstances which shall, in each case, be recorded.
(3) Every cheque shall be drawn in English or Kannada and shall be in favour of the person to whom the money is to be actually paid or in favour of the Bank Account which the person to whom it has to be paid has declared for receiving the payment. The stamp ‘Account Payee’ shall be invariably affixed on these cheques.
(4) The amount of every cheque drawn shall be written in words as well as in figures both on the cheque itself and on the counterfoil or record slip or transaction sheet available in the cheque book and initialled by the person who signs the cheque.
(5) When a cheque is being prepared for signature, the amount which is the next higher number of rupees than the sum for which the cheque is drawn, shall, as a safeguard, be written in red ink across it and its counterfoil as follows:
‘Under Rupees………………….’