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Post # 1
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Join Date: 27 Apr 2010
Location:  KuwaitPosts: 303 |
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Cheques with alteration / corrections will not be accepted in Indian banks from 1st July 2010 |
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recent RBI circular tells banks to not accept cheques marked with corrections or alterations. Overwriting only in the case of date is permissible. If a customer has written ‘hundrede’ instead of ‘hundred’, he shouldn’t try to strike off the extra ‘e’ and rather issue a new cheque to avoid any fine.
This means that any change in the amount — both numeric and words or change in the name of the payee — would lead to the bank returning the cheque. No changes should be carried out on cheques (other than for date validation purposes, if required). “If there’s any change in the payee’s name, courtesy amount (in figures) or legal amount (in words), fresh cheque forms should be used by customers,†the circular states. Though the standard format of writing a cheque refrains people from making any alterations, banks mostly ignore minor changes and clear the cheques. |
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