As per a new mandate issued by the Reserve Bank of India (RBI), anyone issuing any high-value cheque must verify  the cheque details with the respective bank else it will be bounced.

Since there are a lot of banking frauds happening, the RBI has come up with this new rule with respect to issuance of cheques. This way any fraudulent activity can be detected and a person’s money can be safeguarded.

After a customer has issued any cheque, he will have to contact the bank either via mail, mobile or via personal visit to give the details of the cheque issued to the respective branch. If this step is not followed, the cheque will bounce. There is only one issue that is very likely to arise and that is about the senior citizens who are either unable to reach the bank personally or are not familiar with any of the methods of verification.

A person who issues the cheque must give all relevant details to the bank. These details include account number, cheque number, date, payee name, and the amount of the cheque. The new system was supposed to be followed from January 2021 when the Positive Pay System was introduced. The Reserve Bank of India had earlier asked the banks to follow this system for cheques amounting to Rs 50,000 and beyond, but later, it conveyed that banks could also consider making it mandatory for cheques above Rs 5 lakhs, too.