Cheques with overwriting or cutting will not be honoured by the banks in the capital from today, a move intended to prevent fraudulent withdrawal of money and expedite clearance of cheques. The RBI in its directive to banks in June had asked banks not to accept cheques with overwriting or cutting from December 1.
However, changes or corrections would be allowed on dates. For any changes in the cheque, a fresh cheque form needs to be issued.
The new norms will be applicable only for cheques cleared under the image-based cheque truncation system (CTS), which is currently operational in Delhi and will be implemented across India in future.
RBI had also advised banks to create awareness among customers about the new norms, which were aimed at preventing fraud, besides expediting clearance of cheques where CTS (Cheque Truncation System) is used.