CTS 2010 cheque (pay self or pay yourself) correction and clearing process (India)

Question

Form RBI FAQ on CTS cheque correction:

For any change in the payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), fresh cheque leaves should be used by customers. This would help banks in identifying and controlling fraudulent alterations. This prohibition is applicable to cheques cleared under the image based Cheque Truncation System (CTS) only. It is not applicable to cheques cleared under physical exchange of instruments.

I have a current account and my bank doesn't provide any withdrawal slip. So, For NEFT transaction, I fill out the NEFT form and attach a cheque filled with payee's name ("pay yourself for NEFT to 1464xxxxxxxxxxx") and the amount. So, my bank deducts the amount from my account and transfer the money.

Now my question is, Does the bank need to use image based CTS in my case? Will it fall under "cheques cleared under physical exchange of instruments"?

I am asking because I pre-filled some cheques with "pay yourself for NEFT to 1464xxxxxxxxxxx" and now the receiver changed his account. So, I thought about correcting those and attesting those with my signature. My bank manager told me that correction in CTS cheque is not allowed but I think they don't need to clear the cheque by taking an image, so it should be valid under RBI guidelines.

Answer 1

Does the bank need to use image based CTS in my case? Will it fall under "cheques cleared under physical exchange of instruments"?

No. In this case it is used as a withdrawal slip. It doesn't go anywhere.

My bank manager told me that correction in CTS cheque is not allowed but I think they don't need to clear the cheque by taking an image, so it should be valid under RBI guidelines.

The Manager maybe going over board or being cautious ... You have to decide whether its worth the battle in forcing Bank to accept corrected cheque. Or simple use a new one.