Hi Everyone,
Sharing this circular from RBI wid u all.
NO ALTERATION IN CHEQUES AFTER 1st JULY, 2010
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.
Based on the above guidelines Banks clearing teams 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.
Best Wishes
Prasad R
CAclubindia
