Will your chequebook be valid after July 31, 2013?
Will your chequebook be valid after July 31, 2013?,
As per RBI guidelines, there have been certain changes made to the cheques issued by the Bank. However, these changes are available only in chequebooks issued after August 2011. If you have obtained the chequebook prior to this, the cheques will not be valid after July 31, 2013.
If the cheques you currently hold have the following features, they will be valid after the given date.
- “Please sign above” is mentioned on cheque leaf on the lower right-hand side.
- A wave like design is embossed on the left-hand side of Cheque leaf
Below is the new sample cheque format from HDFC Bank.
New Sample cheque format of ICICI Bank
Additionally, any post-dated cheques issued by you and due after July 31, 2013 will need to be replaced by the fresh cheques meeting the above mentioned guidelines.
The RBI (Reserve Bank of India) on 18th March asked banks to issue new cheque books only under the new format and gave them time till July-end to withdraw the old format cheques.
All cheques currently with customers in the old format (non-Cheque Truncation System) will continue to be valid for another four months. The earlier deadline was March 31, RBI added.
“All residual non-CTS-2010 cheques with customers will continue to be valid and accepted in all clearing houses (including the Cheque Truncation System (CTS) centres) for another four months up to July 31, 2013, subject to a review in June 2013,” RBI said in a circular.
The regulator has asked banks to create awareness about the issue among customers through SMS alerts, letters, display boards in branches/ATMs, log-on message in Internet banking and notification on the website so that the deadline can be met.
“All cheques issued by banks (including DDs/POs) with effect from the date of this circular shall necessarily conform to CTS-2010 standard,” the circular said.
The CTS-2010 eliminates the current practice of physically presenting a cheque to the payee bank, thereby substantially reducing the time for cheque clearance.
The RBI has also said the system of post dated cheques and payment via equated monthly installment (EMI), in either the old or new format, will be banned from now wherever electronic debit facilities are available.
“No fresh Post Dated Cheques (PDC)/Equated Monthly Installment (EMI) cheques (either in old format or new CTS-2010 format) shall be accepted by lending banks in locations where the facility of ECS/RECS (Debit) is available. Lending banks shall make all efforts to convert existing PDCs in such locations into ECS/RECS (Debit) by obtaining fresh mandates from the borrowers,” the circular added.
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March 22, 2013