Banks Can Return Cheques Altered For Anything But The Date
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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There are 2 comments. Leave a comment!
¬ MasterAndStudent
#6434 May 12th, 2010 at 7:03 am
This order could have been issued long back .Anyway this would avoid fraudulent activities.
¬ Austin
#6438 May 12th, 2010 at 7:28 pm
Indeed, this should have been done long back. But as they say, better late than never!
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