Issuing a cheque of over Rs 5 lakh? Now, inform your bank first

The previous guideline was for cheques of Rs 50,000, now the amount has been increased to Rs 5 lakh. Representation pic

Banks will follow the RBI implemented new rule from today, which states that the account holder has to inform his/her bank branch while issuing a cheque of Rs 5 lakh and above, or it will bounce. If the cheque is not accepted, the account holder will be charged for this. RBI has issued this mandatory guideline for security reasons to prevent fraud.

People in banking circles said customers are confused and some said this will inconvenience senior citizens. A bank manager said, "The account holder should inform the bank branch manager or concerned officer before issuing the cheque. The account holder can do it via email, phone call or can visit the bank to inform it. The bank should have this information or it will not accept your cheque."

Another bank manager said, "Some banks ask customers if they received a cheque of a big amount. If the account holder denies issuing the cheque then the bank immediately stops payment. This method will help save customers from fraudsters. Due to this new guideline many cheques have been stopped for clearance."

A bank employee said, "The customer can use NEFT or RTGS facilities if they are in an emergency to send money. For NEFT, account holders should have online banking facilities and most senior citizens are not familiar with this. Senior citizens will have to go to the bank and fill the form and it will be troubling for them."

Earlier the guideline was implemented on January 1 and given the name of Positive Pay System. It applied to cheques of Rs 50,000 and above. Now, only the amount has increased to cheques of Rs 5 lakh and above.