RBI Guidelines with respect to Alterations / corrections on cheques.

We would like to inform you that the Reserve Bank of India (RBI) vide their circular reference DPSS.CO.CHD.No. 2806 / 04.07.05 / 2009-10 dated June 22, 2010 has prescribed certain guidelines with respect to Alterations / corrections on cheques. These guidelines will be effective from December 01, 2010.

As per the said guidelines, no alterations or corrections are permitted on cheques. In line with RBI directives under the said guidelines, as and from the December 01, 2010 any cheque bearing alterations or corrections will not be accepted by the Bank at the time of deposit. In case of such cheques deposited through drop-boxes or any other similar means, we would return the cheques on receipt/presentation. The Bank will not be responsible in any manner for the inconvenience and losses incurred due to the return of cheques bearing alterations or corrections.

While the said guidelines are currently applicable only for cheques that are to be cleared under the image-based Cheque Truncation System (CTS), we recommend you to follow this practice for cheques issued across all clearing centres as a prudent measure.

You will appreciate that aforesaid guidelines have been issued to minimize incidents of cheque frauds on account of alterations to various fields on the cheques and thus provide protection to customers as well as the banks.