The Reserve Bank of India (RBI) has sent a circular to the banks stating not accept cheques with corrections or modifications in anything except the date. The step has been implemented to “help banks identify and control fraudulent alterations”. The banks have begun telling customers regarding the policy change via mailers.
If you give a cheque with modifications, you will have to pay cheque return charges which are Rs100-250 for PSU banks and Rs350-550 for private banks.
S Govindan, general manager (personal banking and operations), Union Bank of India said, “It is consumer protection that the RBI is looking at. Many a times cheques are stolen and encashed by other parties by making corrections”..
He said the step is important after noting the changes in the manner cheques are handled nowadays. He added, “Earlier, banks used to tell people not to issue a bearer cheque and about some basic precautions. But now cheques get couriered. Also, they are deposited in drop boxes. So the possibility of them falling into the wrong hands is high.”
The RBI also wants to lessen and, if possible, do away transactions via cheques. A banker said, “Now that daily interest rate calculation has come in, it works in your favour to keep money in your account for as long as possible. At least three days are wasted in the issuance of a cheque. Whereas netbanking is instant”.
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