There is an important announcement regarding cheque alterations.
As per RBI Circular – DPSS.CO.CHD.No. 1832/01.07.05/2009-10 dated February 22, 2010 with effect from July December 01, 2010 no alterations in cheque will be allowed (even if signature is made at the place of alteration). This kinds of altered cheques will not be honored by Bank.
As per the guideline:
1. You are no longer allowed to alter the amount or the payee name while issuing a cheque.
2. Cheques with such corrections will no longer be honored effective July December 01, 2010.
Please issue a fresh cheque in case you need to make any correction.
Update: RBI has notified that the new directive introduced is valid only for cheque truncation system (CTS).
This system is currently being used only in cheque clearing in NCR (National Capital Region) region. All other regions still use MICR system. CTS would be implemented all over India from 1 December, 2010.
So clients outside NCR don’t have to worry about the new directive.
Reserve Bank of India has stated that the new directive introduced on cheque modifications is valid for cheque truncation system (CTS).
Presently CTS is being used in the clearing house of RBI based in the National Capital Region (NCR). The clearing houses in other regions use the MICR system for cheque clearing. This new directive does not hold for clearance carried for over the counter, MICR , non MICR cheques.
RBI has said that CTS would be introduced from 1 December, 2010.
The central bank is taking measures to clear the air on the confusion caused by its new directive on cheques called, ‘CTS-2010 Standards for Cheques’.
Hence the RBI has clarified that clients outside NCR don’t have to worry about the new directive.
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Thanks for the info.have update my colleagues. good to see such informative posts.
n thanks for voting
Thats good news since it will curb cheque forgery to a great extent.
So many people make mistakes while writing a cheque. This means there will be more paper consumption in correcting wrongly written cheques that so far could be rectified by putting your initials against the correction.