New rule on making changes on cheques

The RBI has made a new rule where changes in cheques will no longer be allowed.

Earlier the rule was supposed to come into force from July onwards- however it has been postponed to the 1st of December 2010.

So the age old way of the owner of the account signing against the change will no longer be acceptable once this new rule comes into force.

So what will you need to do?

1. Ensure that you are writing your cheques correctly. NO change will be accepted.
2. When you are not aware of the amount-- you cannot change it-- a new cheque leaf will be required.
3. Take the approved no of cheque leaves that you are allowed to take every quarter- you may need it
4. Start evaluating and using the online transfer methodologies- they are much much easier and safer than cheques.
5. Dont accept cheques with changes - even if they are signed- the bank will not accept them and you may need to pay additional fees because of this.

There still time to go- the RBI has informed bank users of the new rule-- It will get implemented- so start preparing

Happy Investing

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