If you still use cheques for payments, this update is important for you. Banks are introducing a new rule that will make alpha-numeric coded cheque books mandatory from January 1, 2027.
Customers have time until December 31, 2026, to replace their existing 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 early as possible to avoid payment-related issues.
Other public and private sector banks are also rolling out the new cheque books and are informing customers through SMS and email.
Charges May Differ From One Bank to Another
The cost of a new cheque book depends on your bank and account type.
For example, Bank of India provides one free 25-leaf cheque book every year to savings account holders. After that, customers have to pay ₹5 for each additional cheque book. Other banks may have different charges.
Why Are Banks Making This Change?
The Reserve Bank of India (RBI) is working to make cheque payments faster and more secure.
With cheque truncation and continuous clearing systems, physical cheques no longer need to be sent to the paying bank.
Instead, a digital image of the cheque is processed electronically, which helps reduce settlement time and speeds up payments.
What Is an Alpha-Numeric Code?
An alpha-numeric code is a combination of letters and numbers printed on the cheque.
This code makes it easier for banks to identify and verify cheques. It also helps reduce the risk of cheque tampering and fraud, making cheque transactions more secure.