Cheque alteration date extended from 1st July 2010 to 1st December 2010. Kindly go through the RBI circular
Standardisation
and Enhancement of Security Features in Cheque
Forms
RBI/2009-10/503
DPSS.
CO. CHD. No. 2806/04.07.05/2009-10
June
22, 2010
The
Chairman and Managing Director / Chief Executive Officer
All Scheduled
Commercial Banks including RRBs /
Urban Co-operative Banks / State
Co-operative Banks /
District Central Co-operative
Banks
Madam
/ Dear Sir,
Standardisation
and Enhancement of Security Features in Cheque Forms
We
invite your attention to our circular DPSS.CO.CHD.No. 1832/04.07.05/2009-10
dated February 22, 2010 on the subject and specifically to Paragraph 1.8
contained in the annexure thereto on 'prohibiting alterations / corrections on
cheques'.
A
few references have been received from banks and members of the public seeking
certain clarifications on legal validity, effective date of implementation, etc.
We wish to clarify that the prescription on 'prohibiting alterations /
corrections on cheques' -
- has
been formulated on the basis of recommendations of a working group constituted
for examining the need for standardisation of cheque forms and enhancement of
security features therein and after consultations with banks;
- has
been introduced to curtail cheque frauds on account of alterations in the
various fields of cheques and to give protection to customers as well as
banks;
- will
be applicable only for cheques cleared under the image-based Cheque Truncation
System (CTS). Collecting banks should ensure, ab initio, that such cheques are
not accepted for presentment in CTS.
- is
not applicable to cheques cleared under other clearing arrangements such as MICR
clearing, non-MICR clearing, over the counter collection (for cash payment) or
direct collection of cheques outside the Clearing House arrangement
.
- has
been issued in exercise of statutory powers conferred on the Reserve Bank of
India under the Payment and Settlement Systems Act, 2007.
This
prescription will be effective from December 1, 2010. Banks are advised to
ensure that adequate care is taken to educate the customers and to create
awareness among them so that the entire process is carried out in a smooth
manner. As regards other aspects contained in our circular under reference,
separate communication will follow from Indian Banks' Association / National
Payments Corporation of India.
Yours
faithfully
(Arun
Pasricha)
General Manager
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