Blank Cheque Explained: Meaning, Legal Implications & Real Risks

📌 What is a Blank Cheque?
A blank cheque is a signed cheque where the amount and/or payee details are left empty. The issuer trusts the recipient to fill in these details responsibly.

⚠️ Risks Involved:

Misuse or fraud: Amount can be altered without the issuer's consent.

Legal trouble: If misused, it could lead to bounced cheque cases under Section 138 of the Negotiable Instruments Act.

Financial liability: You may be held responsible for the amount entered.

⚖️ Legal Aspects:

Issuing a blank cheque is not illegal, but it carries legal risks.

If bounced, it may result in criminal prosecution.

Keep proof of communication and trust (written agreement if possible).

✅ Pro Tip: Never issue a blank cheque unless it's absolutely necessary and only to someone you trust completely. Use safer alternatives like post-dated cheques or bank guarantees when possible.