Is it necessary to sign on the back of the cheque? Explained

Signing the back of a check is called an "endorsement". This endorsement provides the bank with an opportunity to verify your identity and ensure that the check is deposited into the correct account. All parties who are listed on the "pay to" line on the front of the check must endorse the back.

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Why sign on the reverse of a check when there is no option to sign on the reverse?

There are two reasons why you might need to sign on the back of a check when there is no choice to do so.

The check is from another country: Some countries demand that all checks be signed on the back, even if there is no signature line on the back.
Certified Cheque: A certified check is one that has been guaranteed by the bank. The bank will withdraw monies from your account and keep them in reserve until the cheque is cashed. When you sign a certified check, you are effectively agreeing with the bank that money will be available to cover the check.

However, you must still sign a check in a precise manner in order to do so. The signature on the back of a check that permits the bank to cash or deposit the check is known as an endorsement.

Is it necessary to sign on the back of the cheque?

Yes, in India, you must sign on the back of the cheque. An endorsement is the signature on the reverse of a cheque. It gives the bank permission to pay the check to the individual or organization whose name appears on the endorsement.

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If you do not sign on the back of the check, it will not be accepted by the bank. The check will be returned to you, and you may be charged a fee. You can endorse a check in one of three ways:

Blank Endorsement: This is the most basic method of endorsing a check. Simply sign your name in the endorsement section on the reverse of the check. This sort of endorsement allows the bank the most leeway in deciding how to use the cheque. The bank, for example, may cash the check, deposit it into another account, or transfer the funds to another person or firm.
Special endorsement: With this form of endorsement, you have more say over how the cheque is used. When you endorse someone, you type your name, followed by the words "pay to order," and then the name of the person or entity to whom the check should be made payable. For example, if you endorse a check as "pay to order of Narendra Modi," the cheque can only be cashed by Narendra Modi. Even Rahul Gandhi cannot withdraw money from that check.
Restrictive Endorsement: This sort of endorsement limits the use of the check. When making a restriction endorsement, type your name followed by the words "For Deposit Only" or "Not for Cash." That is, the cheque can only be put into the bank account.

Its not always necessary:

Case 1: When you draw a check and submit it over the counter to withdraw cash. You are asked to sign on the back of the check. That is actually your acknowledgement of getting the cash.

Case 2: When you draw a check favoring someone without crossing as account payee and the payee submits the check over the counter, there is no way we can verify whether that holder or bearer is "holder in due course" or not," so in this case, you (the drawer of the check) need to attest the signature of the payee and write a line "Signature Attested" along with your signature. So in this case, the drawer signs twice, once in front while drawing and again in back while attesting. Similarly, the payee also signs twice: once for the purpose of attestation and again as acknowledgement of getting the cash over the counter.

Case 3: When the drawer deposits the check over the counter for cash and your signature differs from what is in the system, you might also be asked to sign on the back.