A new banking rule will come into effect from January 1, 2027, and it is important for anyone who uses cheques.
Banks will now issue cheque books with a mandatory alpha-numeric code to make cheque processing faster and more secure.
Customers have time until December 31, 2026, to replace their old cheque books. Many banks have already started issuing the new cheque books, while others will begin the process soon.
Replace Your Cheque Book Before the Deadline
Bank of India has informed customers that from January 1, 2027, cheques worth ₹50,000 or more without an alpha-numeric code will not be accepted.
The bank has advised customers to apply for a new cheque book as soon as possible to avoid any payment-related problems.
Other public and private sector banks are also rolling out the new cheque books. Many banks have already started informing customers through SMS and email.
Charges for New Cheque Books
The cost of getting a new cheque book depends on the bank and the type of account you have.
For example, Bank of India provides one 25-leaf cheque book every year free for savings account holders. After that, customers have to pay ₹5 for each additional cheque book. Charges may be different at other banks.
Why Are Banks Making This Change?
The Reserve Bank of India (RBI) is working to make cheque payments faster and safer. The new alpha-numeric code will help banks identify and verify cheques more easily.
This change is also expected to reduce cheque fraud and speed up the cheque clearing process.
What Is an Alpha-Numeric Code?
An alpha-numeric code is a combination of letters and numbers printed on a cheque.
It helps banks verify cheques more accurately, reduces the risk of tampering, and makes it harder to use fake cheques for payments. As a result, cheque transactions become more secure and efficient.
