Tuesday, April 27, 2010

Prohibiting alterations / corrections on cheques

The RBI Circular - DPSS.CO.CHD.No. 1832/01.07.05/2009-10 dated 22nd February 2010, says:

"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. "

Henceforth, banks can return cheques which have any alteration in the

- Payee Name

- Amount in numbers

- Amount in words

The only alteration which is allowed is the alteration in the date.


  1. If the cheque issuer is validating the changes/corrections by putting his signature near to the changes/correction area then also banks will not clear the cheuqe or it can be clear. Kindly clarify.

  2. its a very good and welcome move…thumps up to it…whatever changes to cheque will not be entertain and render it void as per this notifiaction but for the alteration of the date.

    it will certainly curb frauds related to cheques to a certain extent.

    All of us have to little xtra careful while drafting a cheque