If you still use cheques for banking transactions, you may need to check your cheque book carefully.
Banks are adding new security features to cheque leaves to make transactions safer and reduce the risk of fraud.
One such feature is an alphanumeric code, which contains a combination of letters and numbers.
Bank of India (BOI), for example, has introduced an alphanumeric security code on its cheque leaves and has advised customers to use the newer series of cheque books.
However, customers should not assume that every old cheque book has become invalid. The rules can differ from one bank to another.
Why Are Banks Introducing New Cheque Books?
The main aim of these changes is to make cheque transactions more secure.
Banks are adding security features to help identify cheque leaves and make verification easier during processing. This can also help reduce the risk of forged or tampered cheques.
The Reserve Bank of India (RBI) has also been working to make cheque clearing faster through the Cheque Truncation System (CTS).
Under CTS, the physical cheque does not need to travel from one bank to another. Instead, its electronic image and relevant information are sent to the paying bank for processing.
What Is the Alphanumeric Code on a Cheque?
An alphanumeric code is simply a combination of letters and numbers printed on a cheque leaf.
Banks can use such codes as an additional security and identification feature while processing cheques.
Bank of India has already introduced this feature and encouraged customers to shift to the newer cheque book series.
If you are unsure whether your cheque book needs to be replaced, check the latest instructions issued by your bank.
Is There a December 31, 2026 Deadline?
There have been reports claiming that December 31, 2026 is a deadline for certain cheques without the alphanumeric code, particularly cheques worth ₹50,000 or more.
However, customers should be careful before treating this as a universal RBI deadline.
The requirement may depend on the bank and the specific instructions applicable to your account.
The safest option is to check your bank’s official communication or contact the bank directly.
How Much Does a New Cheque Book Cost?
Cheque book charges depend on the bank and the type of account you hold.
For example, Bank of India savings account customers are entitled to 25 free cheque leaves in a financial year.
Additional cheque leaves may attract charges according to the bank’s applicable service charges.
If you need a new cheque book, check your bank’s latest tariff before placing the request.
How Long Is a Cheque Valid?
A cheque is generally valid for three months from the date mentioned on it.
Therefore, make sure the cheque is deposited within this period. If a cheque is returned unpaid, it can lead to financial consequences and, in certain cases, legal action under Section 138 of the Negotiable Instruments Act, 1881.
Why Are Cheques Still Used?
Digital payments have become extremely popular, but cheques are still used for several types of transactions.
Businesses, property-related payments, loans and other financial arrangements may still involve cheque payments.
Cheques also provide a formal record of the transaction through bank records.
So, if you continue to use cheques, keep an eye on your bank’s latest instructions.
If your bank has asked you to replace an older cheque book, it is better to do so before making your next important or high-value payment.
