Accountholders Issuing a cheque of over Rs 5 lakh require to inform bank first

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Sonali Maity | Sep 4, 2021 | Views 403731

Accountholders Issuing a cheque of over Rs 5 lakh require to inform bank first

Accountholders Issuing a cheque of over Rs 5 lakh require to inform bank first

Banks will follow new regulations implemented by the Reserve Bank of India from today, which states that account holders must inform their bank branches when checks of ₹ 500,000 or more are issued, otherwise cheque will be bounce. If the cheque is not accepted, the account holder will bear the cost. RBI has issued this mandatory guide for security reasons to prevent fraud.

Bankers said that customers were confused, and some said this will bother senior citizens. A bank manager said, “The account holder should notify the bank branch manager or  concerned official prior before issuing a cheque. The account holder can notify the bank by email, phone or visit the bank. The bank must have this information, otherwise it will not Accept your cheque.”

Another bank chief said, “Some banks ask customers if they received a cheque of large amount . If the account holder refuses to issue a check, the bank immediately stops the payment. This method will help protect customers from scammers. Because of this new rule many checks have been halted for clearance.”

A bank representative said, “In an emergency, the customer can use the NEFT or RTGS facilities to send money. NEFT requires account holders to have online banking services and most seniors citizens are unfamiliar with this. Senior citizens will have to go to the bank and fill out the form and it will be diffcult for them. ”

Previously, the policy was implemented on January 1 and was known as the Positive Pay System. It applied to cheques worth Rs 50,000 or more. Only the amount has now been raised to cheques of Rs 5 lakh and above.

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