Corrections On Cheques Not Allowed Now

Posted In India - By NitiN Kumar Jain On Sunday, November 28th, 2010 With 0 Comments

Pin It

[pullquote]Mistakes on Cheques are not allowed now[/pullquote]Since the time we started seeing and using cheques, most of us make corrections on cheques (with change duly countersigned) every now and then whenever there is a mistake.

But starting 1st Dec 2010, as per RBI guidelines, cheque leaves with changes/corrections (with exception of changes / correction on date field duly countersigned) would not be honored but returned.

It is recommended to issue a fresh cheque for any kind of mistake on the cheque leaf.

The good thing to note her is that this guideline will be applicable only for cheques cleared under the image based clearing through Cheque Truncation System (CTS), which is currently operational in Delhi and will be implemented across India in future.

Hence, this change will not be applicable to cheques submitted for:

  • MICR Clearing
  • Non- MICR clearing
  • Over the counter collection (for cash payment)
  • Direct Collection of cheques outside the Clearing House arrangement

So, that means we can still do mistake and countersign but partially. Importantly, you never know which cheque clearing system would be used by the person whom the cheque is issued so it is always recommended to get used to new approach as it is definitely going to imply to all means of cheque transactions some time or the other.

Happy banking friends.