Banks will follow the RBI implemented new rule from today, which states that the account holder has to inform his/her bank branch while issuing a cheque of Rs 5 lakh and above, or it will bounce. If the cheque is not accepted, the account holder will be charged for this. RBI has issued this mandatory guideline for security reasons to prevent fraud.

People in banking circles said customers are confused and some said this will inconvenience senior citizens. A bank manager said, “The account holder should inform the bank branch manager or concerned officer before issuing the cheque. The account holder can do it via email, phone call or can visit the bank to inform it. The bank should have this information or it will not accept your cheque.”