New Delhi, 6 April 2025: Even though the era of digital transactions is growing rapidly in the country, the use of checkbooks is still necessary for many people. But now if you have a checkbook, then be ready to loosen your pocket. Banks have changed the rules related to checkbooks, under which a fee will have to be paid for additional checks after the limit of free checks is over. It is important for every account holder to know how much this fee will be and under what circumstances it will be applicable. Let us understand the whole story of this change.

New rules on checkbook

Most banks in India give a fixed number of free checks to their customers every year. For example, State Bank of India (SBI) gives 10 checks free annually to savings account holders, while private banks like HDFC and ICICI issue up to 25 checks for free. But if you want more checks than this, now you may have to pay a fee of Rs 2 to 4 for every additional check. This charge depends on the bank and the type of account.

An SBI official said, “We have a limit of free checks for every account. If a customer wants more than 10 checks in a year, he will have to pay Rs 2 per check plus GST.” At the same time, some banks exempt senior citizens, premium account holders or salary account holders from this charge. But this rule is being strictly implemented for common customers.

Digital vs. Check: Changing Times

In the last few years, UPI and Internet Banking have changed the world of transactions. Transactions worth crores of rupees are taking place through digital platforms every day. Still, the need for checks remains in legal and official payments. Checks are still the first choice for withdrawing cash from the bank or for large transactions. Ramesh Gupta, a Delhi businessman, says, “Digital payment is easy, but the credibility of checks is still intact in big deals.”

However, banks are now trying to reduce the use of checks. Many banks are sending messages to customers advising them to adopt ‘green banking’ and emphasize on digital transactions. A bank manager said, “Check processing takes time and resources. Digital transactions are faster and cheaper.”

Strictness on check bounce

The Reserve Bank of India (RBI) has also tightened the rules related to checks. If the check bounces due to insufficient balance in the account, a fine of Rs 150 to Rs 750 can be imposed. This amount depends on the amount of the transaction and the bank’s policy. Apart from this, the validity of the check is still three months from the date of issue.

The good news is that if the check is lost or there is suspicion of fraud, customers can block it through online banking or mobile app. Shalini Mehta, a housewife from Mumbai, said, “Last month my check went missing. I averted a big trouble by blocking it through the app.”

Why is it important to know the rules?

These changes related to the checkbook may seem small, but they can affect your pocket. If you use checks frequently, exceeding the free limit can cost hundreds of rupees extra annually. Banking expert Anil Sharma says, “Customers should check the terms and conditions of their account. Many times people are unaware of the charges and get upset later.”
At the same time, this step of banks in an attempt to promote digital transactions is also being said to be beneficial for the environment. Reducing the use of paper and saving processing costs are the major goals behind this.
What should customers do next?
If you are a regular user of checkbook, then first of all get information about the limit of free checks and additional charges from your bank. Adopt digital options like UPI or IMPS for small transactions. Rohan Verma, a software engineer from Bangalore, says, “I started cutting down on checks from last year. Now most of the work is done through UPI.”
Be careful when using checkbooks and keep sufficient balance in the account to avoid bouncing. The new rules can affect both your convenience and pocket, so it is wise to be prepared in advance. Will this change end the days of checks? This question remains open, but in the digital age, cheques are now less relevant than ever before.