Cheques with alterations/corrections will not be honoured from 1st July 2010

S L Watwani

Subject:  Cheques with alteration/corrections will not be honoured from 1st July 2010

Cheques with alterations/corrections will not be honoured from 1st July 2010

Apr 22, 2010 RBI

RBI  has issued RBI Circular No.  – DPSS.CO.CHD.No. 1832/01.07.05/2009-10 dated 22nd February 2010 by virtue of which Banks are supposed to prohibit alterations / corrections on the cheque leaf. Circular summary is as follows:-
Prohibiting alterations / corrections on cheques : No changes / corrections should be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), etc., fresh cheque forms should be used by customers. This would help banks to identify and control fraudulent alterations.

Based on the above guidelines Banks clearing teams can return cheques which have any alteration in the :

  Payee Name

  Amount in numbers

  Amount in words

The only alteration, which is allowed is the alteration in the date.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: