Understanding the Parts of a Cheque

Although digital banking and PayNow transfers dominate the financial scene in Singapore, cheques still play an important role—sometimes when you get paid with a cheque, or receive one as part of a family transaction, and sometimes ang bao money is in a cheque too! Whether you're a business owner issuing monthly cheques or a tenant settling your rent, knowing how to correctly fill out a cheque, and identify something wrong with one, can save you from delays and rejections.

Even as Singapore moves towards becoming a cheque-free society, understanding the parts of a cheque remains useful for day-to-day transactions. Let’s break it down.

A cheque is more than just a piece of paper—it's a legal document that authorises a bank to transfer funds from the payer's account to the payee. Each part of a cheque serves a specific purpose, helping banks verify, process, and clear the payment.

Let’s explore the cheque components you’ll find on a typical cheque issued by Singapore banks.

1. Your information

Your name and address usually appear at the top-left or top-middle portion of the cheque. In most cases, this is pre-printed when your cheque book is issued by the bank.

You don't necessarily need your full NRIC name, but it should match the account holder name registered with the bank. This information is important because it confirms who is issuing the cheque and provides a point of contact if issues arise during processing.

2. Cheque number

The cheque number is a unique identifier printed at the top-right and again at the bottom of the cheque (as part of the MICR line). It helps both you and the bank keep track of issued cheques and serves as a reference if the cheque gets lost or needs to be cancelled.

When reconciling your bank statements, referencing cheque numbers makes it easier to spot any irregularities.

3. The date

The date field is usually found in the top-right corner of the cheque. Acceptable formats include DD/MM/YYYY or DD-MM-YYYY. 

This date matters because cheques in Singapore are generally valid for six months from the issue date. If post-dated (i.e., written with a future date), the bank may not process it until that date. Writing the correct date ensures timely clearance and avoids rejection due to staleness.

4. The recipient's name

You’ll find this field just after the phrase “Pay”, or less commonly “Pay to the Order of”.

It’s critical to spell the recipient’s name exactly as registered with their bank. For individuals, use their full legal name. For organisations, use the official registered name (e.g., “XYZ Pte Ltd”). Any spelling error or nickname may cause the cheque to bounce or require reissuance.

This field determines who can deposit or cash the cheque, so accuracy is key.

5. The payment amount

This section appears in two places—once in words (e.g., “One thousand two hundred dollars only”), commonly the line just after “Pay”, and once in numbers, commonly next to the words (e.g., “$1200.00). Both must match exactly. This helps the bank clarify the total amount in case either the words or number amounts are hard to decipher.

To prevent fraud or alteration:

• Write clearly and avoid leaving blank spaces. 

• Always fill in the full amount, including decimals for the number value, and use the word “only” at the end of the written amount or draw a line through it to the end to prevent tampering. (Such as someone adding extra dollars or cents to the amount.)

6. Memo line

Located at the bottom-left, the memo line is optional but helpful. It lets you note the purpose of the payment — for example: “April 2025 Rent”, “Invoice #453” or “General Expenses”. This is useful for personal reference or record-keeping, especially when issuing multiple cheques.

If you’re writing a cheque to pay a business, they may ask you to include a reference in the memo line to help bookkeeping. So it’s a good idea to confirm this as well!

7. Bank name

The name of your issuing bank is typically pre-printed on the cheque, either in the top-left corner or near the middle. 

This ensures that the cheque is processed through the right financial institution, allowing for proper fund withdrawal from your account.

8. Routing and account number

At the bottom of the cheque, you’ll see a string of numbers called the MICR line. 

This includes:

• The bank routing number (identifies your bank)

• Your account number

• The cheque number (again)

Bank routing number

A bank routing number is a 9-digit code used to identify where your bank account was opened. It may also be known as an RTN, an ABA routing number, or a routing transit number. It basically identifies your bank within the banking system (and usually denotes regional location as well).

Account number

The second set of numbers, typically varying from 8-12 digits, is your account number. It refers to the account from which funds will be withdrawn. It’s unique to your account and no two are the same. 

These numbers are crucial — they tell the clearing bank where to draw the funds from, ensuring the correct account is debited.

9. Signature

Located at the bottom-right corner, your signature is what authorises the payment.

When you sign, your signature must match the signature the bank has on file for your account. Mismatched or missing signatures can result in the cheque being rejected. For joint accounts, make sure the correct authorised party signs.

How to endorse a check that you’ve received from someone else

If you flip over a check that you’ve received, you’ll see a blank line on the back at the top of one of the short ends. When you’re ready to deposit a check through an ATM, with a bank teller or via a mobile banking app, sign your name on the blank line. This indicates that you’re the intended recipient and that you’ve authorized the deposit.

>> Read more: A Step-by-Step Guide to Cheque Deposits

In Singapore, cheques generally fall into two categories:

Cash Cheques: A cash cheque is a cheque that allows the payee to withdraw funds in cash directly from a bank. Unlike crossed cheques, cash cheques do not have two diagonal lines across the top-left corner. Because of this, they can be encashed over the counter at the issuing bank without the need to deposit the cheque into a bank account. Cash cheques are often used for urgent or one-off payments, such as when the recipient does not have a bank account or needs immediate access to funds. 

However, cash cheques can be risky. Since they are transferable, anyone in possession of the cheque could potentially endorse and cash it, depending on the bank’s requirements. 

Crossed Cheques: A crossed cheque is considered the safer and more secure option, and most cheques issued locally are crossed cheques. It features two parallel diagonal lines on the top-left corner, often accompanied by the phrase “A/C Payee Only.” This crossing indicates that the cheque must be deposited into a bank account and cannot be cashed out over the counter. Additionally, crossed cheques are non-transferable, meaning that only the individual or organisation named as the payee can receive the funds. Because they are more secure, crossed cheques are widely used in business contexts: landlords, companies, and institutions often require payments to be made via crossed cheque to ensure a paper trail or proof of payment, such as for rental deposits, tuition fees, or vendor invoices.

Always use a crossed cheque unless you have a specific reason to issue a cash cheque.

Once a cheque is deposited, it enters the clearing process, which typically takes 1 to 2 business days in Singapore. The bank verifies the cheque details, payer’s signature and availability of funds, before clearing the cheque. If there’s a problem with one or more of these, they’ll call you. 

Most banks have a cheque cut-off time (such as 4pm on weekdays for OCBC), after which the cheque is processed on the next business day. So in this case, if you deposited your cheque before 4pm and it clears, the funds would be available the next business day. If you deposited after 4pm, the funds would be available the following business day.

The payee’s account is only credited once the cheque is successfully cleared. Keep in mind that if the cheque bounces (due to insufficient funds or incorrect information), penalties may apply.

Phasing out corporate cheques

With cheque usage falling rapidly and businesses increasingly adopting FAST transfers, PayNow or GIRO for smooth transactions, the Monetary Authority of Singapore (MAS) has announced that all banks in Singapore will stop issuing new corporate cheque books by end-2025. However, individuals can continue using cheques "for a period beyond 2025". 

The deadline to cease processing of corporate cheques is 31 December 2026, though corporate cheque payees should present their cheques for clearing well before then. 

While individual cheque use remains for now, this shift reflects a broader trend — Singapore is moving rapidly towards a cheque-less future.