Banks Can Return Cheques Altered For Anything But The Date

Cheque

A recent RBI Circular [1832/04.07.05/ 2009-10 dated 22nd February 2010] now clearly mandates that the branch/ clearing teams can return cheques which have alteration in the:

* Payee Name
* Amount in numbers
* Amount in words

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.

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Author: Austin Comments: 2 comments Date: 3 May 2010
Categories: Banks Tags: , ,

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