March 27, 2026

What Is an Account Payee Cheque?

An ‘Account Payee Cheque’ is a safe way to make payments using a cheque. It makes sure that money goes only to the bank account of the person whose name is written on the cheque.
This type of cheque cannot be cashed at the bank counter. It must be deposited into a bank account.

Meaning of Account Payee Cheque

An account payee cheque means, the cheque amount will be credited only to the payee’s bank account. No other person can take the money. That is why it is safer than normal cheques.

Why Should You Use an Account Payee Cheque?

People use account payee cheques because:
  • It reduces the risk of fraud
  • The money reaches the right person
  • The payment can be tracked
  • It is safe for large payments
Most salary payments, rent payments and business payments use account payee cheques.

How to Make an Account Payee Cheque?

Making an account payee cheque is very easy.
On the top left corner of the cheque
1) Draw two parallel lines (//)
2) Write ‘A/C Payee’ or ‘Account Payee Only’
This instruction tells the bank to credit the money only to the payee’s account.
How to Fill an Account Payee Cheque?
  1. Write the date clearly on the top right side.
  2. Write the full and correct name of the person or company.
  3. Write the amount in words and end with ‘Only’.
  4. Write the same amount in numbers in the box.
  5. Sign the cheque with your signature registered in the bank
  6. Draw two lines and write ‘A/C Payee Only’.

Can an Account Payee Cheque Be Changed or Cancelled?

Yes. You can cancel it by writing “CANCELLED” across the cheque. If you want to stop the payment of the cheque you have already issued, request a stop payment from your bank
Once issued, the payee's name should not be changed.

Can an Account Payee Cheque Be Given to Someone Else?

Yes, an account payee cheque can be given to someone else to deposit on your behalf. The money, though, will come to the payee’s account.

Validity of Account Payee Cheque

A cheque is valid for 3 months from the date written on it.

FAQs on Account Payee Cheque

What is the main purpose of an account payee cheque?
To make sure the money goes only to the correct bank account.
Can I withdraw cash using an account payee cheque?
No. It must be deposited into a bank account.
Is writing “A/C Payee” compulsory?
Yes. Without it, the cheque may be treated as a normal cheque.
Can I write an account payee cheque for myself?
Yes. You can write it in your own name and deposit it into your account.
Is an account payee cheque safe?
Yes. It is one of the safest cheque types.
What happens if the cheque is lost?
Misuse is difficult because it can be deposited only into the named account.

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