Dear all,
This is a good news and right time to start with new cheque using practices.
Reserve bank of India has ordered all the banks to stop the existing old format cheques (Non CTS cheques)from January 2013.The existing cheques will not be accepted in the banks,the cheques will be out of circulation from 01st of January 2013.
Banks like SBI,ICICI,HDFC etc have already started educating their customers in this regard and started using new CTS 2010 cheque books.
A new cheque leaves with highest security features (CTS 2010) will only be in circulation from 01st January 2013.
For those members who raised so many questions in this forum about their worries due to misplaced cheques/lost cheques etc.. and worried about troubles under NI act ,I would like to advise the safety practices to be followed now onwards.
Need not woory about lost cheques too much, as they will be out of circulation from January 2013 as per RBI instructions.
Follow the practices given below from now onwards,
1.Keep your cheque book always under lock and key
2.Use cheque book only when it is necessary,most of the times we can use Electronic Fund transfer
3.Mark as Not negotiable and not transferable on all the cheque leaves issued by you(Contact your bank for more details and confirm this with your bank people).Always cross the cheques.
4.Keep a record of cheque leaves issued by you and review whether the cheques you issued are presented,cleared or not regularly. Always try to have a photocopy of the cheque issued by you if possible.
5. Never sign the cheque leaves in advance. Sign only after filling all the columns like payee name, amount, date etc.
6. Avoid issuing blank signed cheques.
7.When ever you issue blank signed cheques to Banks,Financial corporations etc for security purpose,kindly write payees name clearly in your own hand writing.Take a photocopies of all such security cheques and take acknowledgement letter for receipt of cheques with cheque numbers.Most of the bank employees say,you just sign we will fill up other detais,dont accept it,it is your main responsibility to write payees name.
8.Most of the private banks will ask the customer to destroy the cheques on their own at the time of closing the bank accounts,never do that.
Strongly Insist the bank employee to accept the unused cheque book.Cheque book is Banks property and it is the responsibility of the bank to take back the unused cheques for destruction in the bank and dont forget to take clear acknowledgement for returning of the unused cheque book.
To be more safe write as "cancelled" in big bold letters on all the cheques,before submiting to the bank, while closing the account.
9.When you are having multiple bank accounts,avoid having cheque book facility with all the banks,unless it is very much necessary like for business people etc.
Have cheque book facility with any one bank,so that you can transact to this account through electronic fund transfer.
Friends take care in future.
Note: Above mentioned points are my opinions and experiences .No responsibility of any kind will be taken.
Clarify all the above issues with your advocate and bank before practicing.
These are only advises.
