The adoption of the rule on banks not accepting previously deposited cheques will be delayed until further notice, the Banking Council announced this week.
A previously deposited (unpaid) cheque is one that has been referred back to the depositor for various reasons, which include the cheque being post-dated or the account it is drawn on having insufficient funds. These cheques carry a bank stamp.
The implementation of the new rule has been delayed at the request of bank customers, such as companies, which have asked for more time to implement procedures to handle the proposed rule. About 80 percent of cheques are currently paid upon re-deposit.
Banks are working closely with their customers to find procedures that will enable them to implement the rule as soon as possible.
A second rule that will be implemented on August 1 is that banks will no longer accept or process cheques that have been altered in any way. This decision has been taken to fight the fraud arising from the alteration of cheques.
From the beginning of next month, altered cheques deposited at banks will be returned to depositors, marked "Unable to collect funds - Alteration". So, should you make a mistake in filling out a cheque, it must be destroyed.
Also remember not to accept altered cheques, even if the alteration has been countersigned.
Note that cheques which have pre-printed dates with the prefix "19" may be changed to "2001". This is not considered to be an alteration. Similarly, crossing out the word "bearer" and changing this to "order" is not regarded as an alteration.