RBI  has issued RBI Circular No.  – DPSS.CO.CHD.No. 1832/04.07.05/2009-10 dated 22nd February 2010 by virtue of which Banks are supposed to prohibit alterations / corrections on the cheque leaf. Circular summary is as follows:-

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.



Standardisation and Enhancement of Security Features in Cheque Forms

DPSS.CO.CHD.No. 1832/ 04.07.05 /2009-10

February 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

Paper-based cheque clearing continues to be one of the popular modes of initiating payment transactions in the country. During the period April-December 2009, clearing houses in the country have processed on an average around 4.5 million cheques every day. Several measures have been initiated by Reserve Bank of India to ensure that this retail payment product functions in a safe and efficient manner.

2. Introduction of Magnetic Ink Character Recognition (MICR) technology during the mid-eighties has been the single-most important development responsible for making the cheque clearing popular and efficient – volume-wise, speed-wise and convenience-wise. At the banks’ end too, cheques in MICR format have facilitated post-processing ease in operations, affording credit to customer accounts and reducing reconciliation issues, thus improving customer service. Standardisation of cheque forms (leaves) in terms of size, MICR band, quality of paper, etc., was one of the key factors that enabled mechanisation of cheque processing.

3. Over a period of time, banks have added a variety of patterns and design of cheque forms to aid segmentation, branding, identification, etc., as also incorporated therein a number of security features to reduce the incidence of cheque misuse, tampering, alterations, etc. Growing use of multi-city and payable-at-par cheques for handling of cheques at any branches of a bank, introduction of Cheque Truncation System (CTS) at New Delhi for image-based cheque processing, increasing popularity of Speed Clearing for local processing of outstation cheques, etc., are a few aspects that led to looking into the need, if any, for prescription of certain minimum security features in cheques printed, issued and handled by banks and customers uniformly across the banking industry.

4. Against the above backdrop, a Working Group was set-up by the Reserve Bank of India for examining further standardisation of cheque forms and enhancement of security features therein. The Working Group comprised various stakeholders viz. commercial banks, paper manufacturers, security printers, etc., apart from Reserve Bank of India. Recommendations of the Working Group were discussed internally as also forwarded to Indian Banks’ Association (IBA), National Payments Corporation of India (NPCI) and select banks for their views. The feedback from these institutions has been received and duly considered.

5. It has since been decided to prescribe certain benchmarks towards achieving standardisation of cheques issued by banks across the country. These include  provision of   mandatory   minimum   security  features   on   cheque  forms  like  quality  of paper, watermark, bank’s logo in invisible ink, void pantograph, etc., and standardisation of field placements on cheques. In addition, certain desirable features are also being suggested which could be implemented by banks based on their need and risk perception. The set of minimum security features would not only ensure uniformity across all cheque forms issued by banks in the country but also help presenting banks while scrutinising / recognising cheques of drawee banks in an image-based processing scenario. The homogeneity in security features is expected to act as a deterrent against cheque frauds, while the standardisation of field placements on cheque forms would enable straight-through-processing by use of optical / image character recognition technology.

6. The benchmark prescriptions shall be known as CTS-2010 standard, specifications of which are annexed. Effective date of implementation of the standard will be advised to you in due course. It is our intention that the revised cheque standard is implemented by banks before the roll-out of CTS at Chennai. IBA and NPCI will be co-ordinating and advising banks on introduction of additional security features on cheques as also other aspects relating to implementation of the standard across the country.

7. Please acknowledge receipt of the circular and indicate your readiness for implementing the CTS-2010 standard“.

Yours faithfully

(G Padmanabhan)
Chief General Manager


Circular DPSS.CO.CHD.No. 1832/ 04.07.05 /2009-10

CTS-2010 Standard Specifications

More Under Fema / RBI


  1. fayiq says:

    there is a change in cheque at aplace below the date not at payee name, date and amount. and cheque is credited to payees account though in other bank but same title. is it an alteration

  2. DDMARIA says:

    Ihave a doubt. In a cheque the holders name appear in right bottom corner. Can that name have salutaions like Mr, Miss, Dr etc????? where can i read abt it in rbi rules or any act???

  3. k.dhingra says:

    I work in a limited company but many times we receive cheques having pvt ltd written on cheques ( which was our previous company). In such cases we were depositing the cheque along with an undertaking taking full responsibility of these cheque.
    But recently some banks have stopped accepting these cheque having miss pelt names even though we provide full undertaking .
    What are the RBI Guidelines in these cases.

  4. Guadalupe Heldman says:

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  5. Naresh R G says:

    RBI has subsequently issued a clarification stating that the changes are meant only for cheques presented under Image Based Cheque Truncation System and not for cheques presented under normal MICR / Non-MICR clearing, cheques presented across counter for cash payments etc.

  6. Satyanarayana Murthy says:

    There are no mandatory recommendations. There are only suggestions in the notification which is DPSS.CO.CHD.No.1832/04.07.05/2009-2010 dated 22.02.2010.
    The effective date is wrong. The date is yet to be announced. Readers please refer to the “CTS-2010 standard“, for accurate information.

  7. Sharad says:

    The circular from RBI does not state the effective date 01st Jyly, 10. Where can I find the press release / circular which specifies the date of 01st July, 10

  8. Suresh says:

    In UK they are working on removing of the paper based cheque system. Will soon it will be out of the banking operations.
    We have to think atleast now and we will also be ready by 2015.

  9. Gaurav Verma says:

    Gr8 move…
    It’ll save time for those whose cheques are stolen and for bank employees as well….
    Thanks R.B.I.

  10. Shrikant says:

    Kindly publish the authentic data with original circular from RBI. There is no such circular available on the official site of RBI.
    This type of misleading information may also lead to trustworthiness of the other information posted on the site.

    1. CA Sandeep Kanoi says:

      I think you should think twice before writing such things. Instead of declaring the information misleading straightaway you should have asked us for copy of notification.
      Website is authentic , information is authentic and fact can be confirmed by you from our thousands of subscriber.

      I have uploaded the relevant circular and annexure on the website, inside the post for your perusal.

  11. Chandrasekhar Dash says:

    Can any body publish the original circular referred above. I could not find any such circular in RBI site. There is a circular 1832/04.07.05/2009-10 available which does not referred to above details.
    pls help…

  12. Chandrashekhar Deshmukh says:

    It will save time of Bankers although they have to manage with transition phase of returning corrected cheques to individuals. People will have to be careful while writing and releasing cheques. It is a good move. But what will happen when it is corrected and returned by the Banks and not realised? Will it be considered as defaulter? Can be penalized?

  13. rakesh kumar says:

    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.

    its a very good and welcome move…thumps up to it…

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

  14. CMA. R.LGARG - FICWA says:

    dae validation should not go beond theinncial yer of origional date of issue. It will hlp in minimising the haces of malpractices for booking expmsesin o financal year and actually pertains to the otyher year

  15. Kishore says:

    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. Please clarify.

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