New RBI guidelines for Cheque alterations


Banks have received RBI guidelines by virtue of which they are supposed to prohibit alterations / corrections on the cheque leaf. The details are as follows:

 RBI Circular – DPSS/CO/CHD/ No. 1832/01.07.05/ 2009-10 dated 22nd February 2010 states that 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 branch / 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.

Note:

  • The above change will be incorporated by change in the Terms and Conditions on the cheque book issued by Banks.
  • Where available, customers should be informed through a message in the email as well as physical statement in April, May, June quarter
  • Banks will start returning the cheques for cash payments across the counter and clearing cheques effective 1st July 2010. 

9 thoughts on “New RBI guidelines for Cheque alterations

  1. Dear Sir,

    I need your response to the recent event which is explained below.

    I had presented 3 cheques for Rs. 500/- each to M/s Matha Hiranmayi Appt. Association as maintence charges for April May and June respectively which was crossed and cheque had no mistake or corrections.

    However, the presenter had presented June cheque instead of May cheque via Karnata Bank.

    My Bankers have deducted Rs. 52 /- from my account for no fault of mine. This is terrible injustice.

    1. Why did the Presenter Bank blindly accept the cheque and passed it from their bank ??
    2. Why the Accepter bank received and penalized me for no fault of mine ??

    Its not the question of money, but in principle in need justice.

    Pls guide me so that I take it with president of my Bank ( thyagaraja Cooperative Bank ) immediately.

    S.Venkatesh
    Mob : 09740083499

  2. I just searched the Reserve Bank web site and could not find this circular nor any such instructions. Could you kindly give me a link to the official site where I can check this.
    Thanks

  3. Dear Sir,

    I have a cheque given by one party for Rs 2,00,000. He has signed the cheque twice once in RED ink and the other in BLUE ink, unfortunately i did not check the instrument when i got it from him. As it is a PDC dated 12/09/2010. and the party in USA right now.

    Please advice me whether i can transfer the instrument in my account or not

  4. dear sir,

    I had issued three years back one blank cheque only ,Mentioning the name of the party and dated 15.7.2007 the said cheque was expired on 15.7.2007,He Himelf carefuly changed the date on the cheque and made the alteration of 15.9.2009,which was not easily identified by our eyes, but the alteration is cleared observed from the magnifying glass,and on another hand he himself has filled the cheque by words and figures and same he had presented in his bank before ending six months,
    Now he has filed a criminal suite agaisnt me in court.

    What to do?
    Umang shah

  5. Hi Deepak,

    ON SEP 12TH, I’VE ISSUED AN INDIAN BANK CHEQUE FOR AN AMOUNT OF RS.500/- TO TIKONA DIGITAL NETWORKS, SINCE THE ICICI BANK CHEQUE (# 9158) I’VE GIVEN EARLIER WAS MARCH DATED (30/03/2010 – which was valid till 30/09/2010 only). THE INDIAN BANK CHEQUE WAS CLEARED ON 21ST SEP 2010.

    TO MY SURPRISE, THE ICICI BANK CHEQUE WAS ALSO DEPOSITED ON 17TH / 18TH OCT AND IT GOT CLEARED. WHEN I ENQUIRED THE BANK HOW A STALE CHEQUE CAN BE HONOURED, THEY HAVE CONFIRMED THAT THE DATE OF THE CHEQUE WAS CHANGED TO 30/09/2010 AND PRESENTED, WHICH IS NOTHING BUT FORGERY. I’M WAITING FOR THE PHOTOCOPY OF THE CHEQUE FROM THE BANK

    PLEASE SHARE YOUR THOUGHTS/VIEWS ON WHAT I NEED TO DO NEXT?

  6. Sir, the drawee has an account with SBI’s Indore(MP) Branch.Can I deposit a cheque in his account at SBI New Shimla(HP)?

  7. I have presented a cheque to UBI,CP Branch where there was a correction in the date of issue,which has been intialed by the intiator.I was told by bank official that RBI instructions are clear that such corrections will not to be accepted,but I find on the net that such correction can be accepted but any corrections in the name,amount (both in figure or words) are not to be accepted. will the concern bank clarify the correct position.

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