10/12/2012

Know about your New Bank Cheque Book ? Cross Cheque, Multicity Cheque

The History of cheque is very old and in earlier days cheque was know by different names like During Mauryan period it is called Aadesh,  Romans called  praescriptiones and Muslim trader called it Saqq etc.

The first banking cheque was introduced in 1717 by Bank of England. It was a preprinted form which was printed on cheque paper to prevent any fraud and this is a reason call it  cheque book. Since its introduction in banking business, it was endeavor of every countries's central banks to regulate the rule and regulation to make it fraud proof as well as easy to use.

To make cheque facility more fraud proof in India, the Reserve Bank of India has issued some guideline to all the bankers operating in India and asked them to withdraw all earlier issued cheque book from their customers  and issue new cheque book  which are made with some modifications to make the cheque book more fraud proof.


2.What are the new features added in the new Cheque book?


  • These are some new feature added in new cheque:Date format- Earlier there was a single line where customer required to write date of issue of the cheque, that single line has been now changed in boxes where customer required to write date in DD/MM/YYYY format.
  • Security Stripe: a security strip just below the bank account number, it is said that this stripe will make a cheque scan proof if anyone try to scan then on scan copy in place of strip it will show scan copy  and by this way it will prevent fraud through scanning .
  • Symbol of rupees has been added in new cheque where it was not there in old cheque.`
  • Multicity cheque facility with payable at all the branches of that particular bank. Now all saving bank cheque of SBI would be multicity. This will enable the customer to paid at any of the more 13000 branches of SBI across the India. The advantage of multicity cheque is that it can be in cashed across the country at the concern bank branch.
  • Next time, if you need to send money to your relatives or friends think twice before going for preparing a draft, use your multicity cheque, it is as good as a bank draft. It will also save you money as you will not need to pay any commission which you have to pay at the time of making a draft.
     2.  Before issuing cheque must ensure these
  • Issue cheque only when there is sufficient fund in your account otherwise issue of cheque without sufficient funds in the account may attract penalty under section 138 of NI Act.
  • Any alteration in a cheque must be verified by signature of the drawer not by initial.
  • One should write the amount in their cheques, both in words and figures as clearly as possible and in a way to prevent any insertion or alteration, one  should commence the writing as close as figure . and should add the word “only” in last.
  • For further safeguard if cheque is required issued to make a payment to a party, it should be issued as cross cheque. How to convert a normal cheque into  cross cheque. It is very simple to make a normal cheque, to cross cheque just put  two parallel lines at the top left corner of your cheque, it is enough to make your cheque cross cheque and if you want you can also write “A/C Payee” in between these parallel lines.
  • Don’t write/sign or affix rubber stamp on the code line.
  • Don’t fold the cheque
  • Don’t use pins/staples on the code line
  • Don’t paste paper/tape on the cheque
What is multicity cheque ? The multicity cheque is a cheque which enable it the drawer to in cash at any branch of that particular bank across the country.

As per bankers notification the new cheque book will reach by 15 Dec 2012 to all their customers and if anyone not getting his cheque book by 15 Dec 2012, such customers are requested to contact their local branch. These are some changes which I have noted in the newly issued cheque book. You may add some other if you have some other point about cheque and cheque book.

What benefits the customer will get with this new Cheque?