Introduction
Cheques are still an important method of payment for many individuals, businesses, and government bodies in India, despite the rise of digital transactions. Over the years, the Reserve Bank of India (RBI) and banks like State Bank of India (SBI) have introduced new rules for Multi City Cheques to make cheque payments safer, faster, and more convenient.
One of the major developments was the introduction of Multi City Cheques (MCCs) and CTS-2010 standards, which brought uniformity and improved security in cheque processing. If you’ve ever received or issued a cheque that says “Payable at par at all branches,” chances are, it was a Multi City Cheque.
This blog aims to simplify the Policy on Multi City Cheques (Issuance, Collection & Dishonour) so that every bank customer can understand their rights, responsibilities, and options while using cheques.
What is a Multi City Cheque (MCC)?
A Multi City Cheque is a type of cheque that is payable at any branch of the issuing bank across India, not just at the branch where the account is held. So, if your home branch is in Delhi and someone deposits your cheque in Mumbai, it will still be processed as if it were local.
This is possible due to the Core Banking System (CBS) and CTS-2010 standards implemented across banks.
Why Did RBI and Banks Introduce CTS-2010 Cheques?
Back in 2012, RBI brought in the Cheque Truncation System (CTS) and laid out the CTS-2010 standard, which includes:
- Uniform size and layout for cheques
- Special security features to prevent fraud
- Faster processing through digital images instead of moving physical cheques between branches
Today, only CTS-2010 compliant cheques are allowed in clearing, and they are designed to work across cities and branches seamlessly.
Key Benefits and Rules for Multi City Cheques
- Payable at Any Branch: You don’t need to worry about “local” or “outstation” anymore.
- Faster Clearance: Thanks to CTS, cheques clear faster and with less manual handling.
- Better Security: Special features help identify fake or tampered cheques.
- Convenience: You can deposit or cash the cheque at any SBI branch in India.
Who Can Get Multi City Cheques?
All customers with cheque-operated accounts, who have:
- Valid KYC (Know Your Customer) documentation
- A registered mobile number with the bank
…are eligible for MCCs. Cheque books can be applied through Internet Banking, or mobile apps like YONO.
Limits and rules for Multi City Cheques: How Much Can You Withdraw or Transfer?
For Home Branch:
There is no limit on the amount for which you can issue a Multi City Cheque.
For Non-Home Branches (i.e., other branches):
There are caps printed on the cheque itself, like:
“Valid up to ₹10 lakh at Non-Home Branch for Non-Cash Transaction Only”
Let’s break it down:
For Savings Bank Accounts:
- Regular customers: up to ₹10 lakh
- HNI/NRI customers: up to ₹50 lakh
For Current Accounts:
- Personal, Corporate, Govt Departments: up to ₹100 lakh
- Some departments may have no cap if there’s a special arrangement
- Corporate Clients with special facilities (CCPAP): up to ₹1 crore or even unlimited
For Cash Credit Accounts:
- Up to ₹50 lakh
These are all subject to certain conditions and may require approval.
How to Apply Chequebook Online in SBI?
Cash Withdrawal Rules for Multi City Cheque at Non-Home Branches
Especially at non-home branches, while MCCs are meant mostly for transfers, cash withdrawals have stricter limits,
| Segment | Self Cheque | Through Cheque (Third Party) |
| Personal (General) | ₹5,000 | ₹50,000 |
| Super Senior Citizens (80+) | NIL | NIL |
| SME Accounts | NIL | ₹2 lakh |
| Agriculture (KCC Cheques) | NIL | ₹1 lakh |
No cash is paid for corporate cheques like CAG/CCG/CMP unless it’s from a Wealth Savings Account, where there’s no cap for self-withdrawals.
Types of Cheques: Order vs Bearer
- Order Cheques: Payable to a specific person or entity. Safer and used more commonly in Savings, Current and Corporate accounts.
- Bearer Cheques: Anyone holding the cheque can encash it. Riskier and mostly used in retail personal accounts.
Customers can request the type they prefer, based on their account type and risk appetite.
How Many Cheques Can You Get in a Cheque Book?
Depending on your account type and usage, cheque books come with:
- 10, 25, 50, or 100 leaves (sometimes even up to 1000 leaves for corporate clients)
Emergency cheque books with 5 or 10 leaves are also available for urgent needs.
Security Features of MCC Cheques
SBI’s Rules for Multi City Cheques have 13 strong security features, including:
As per CTS-2010 Standards (9 Features):
- Watermark paper
- VOID Pantograph
- Bank’s logo in UV ink
- Micro lettering
- Cheque background color standards
- New Rupee symbol
- Standard layout
- Pre-printed account number
- Printer name with CTS-2010
Additional by SBI (4 More):
- Fugitive Ink (smears if tampered with)
- Reverse-printed Account Number
- UV Band in critical fields (like Payee Name, Amount, etc.)
- Random Alpha Numeric Code (cross-verified at time of payment)
All of these help protect against fraud, tampering, or misuse.
What Happens If Cheques Get Undelivered?
If the cheque book you requested comes back undelivered:
- It’s marked as “STOPPED” in the system.
- Kept safely at the branch under dual custody.
- Branch staff will contact you to verify your address.
- If not collected in 2 months, the cheque book will be destroyed.
- Records of delivery, SMS, and return are all maintained.
Before Paying a Cheque – What Does the Bank Check?
The bank performs several checks before releasing payment:
- Is the cheque genuine and not tampered?
- Are the signature and details matching the bank records?
- Is the cheque within its validity period?
- Has the amount been altered?
- Was the cheque printed under the customer’s name and account?
For high value cheques (₹2 lakh+), the bank may also:
- Call the account holder
- Use UV lamps to verify security features
- Use fugitive ink test (for ₹25,000+ cheques)
- Refer suspicious cheques to Branch Head
Positive Pay System (PPS)
To further reduce fraud, RBI introduced the Positive Pay System in 2021. Here’s how it works:
- When you issue a cheque, you pre-register its details (amount, payee, date, etc.) with the bank via online or mobile banking.
- When the cheque is presented, there is are rules for Multi City Cheques to compares it with the details you submitted.
- If there’s a mismatch, the cheque is flagged.
This is mandatory for cheques ₹50,000 and above, especially if you want the cheque to be covered under RBI’s dispute resolution.
Rules for Multi City Cheques and Dishonour Policy
Cheques can bounce (be dishonoured) due to reasons like:
- Insufficient funds
- Signature mismatch
- Date issues
- Altered details
Frequent cheque bounce incidents (especially of amounts under ₹1 crore) are a concern. RBI advises banks to track such accounts and take action.
Banks may:
- Put restrictions on such accounts
- Warn the account holder
- Deactivate cheque books for repeated offences
Even mandates like NACH (National Automated Clearing House) or ECS failing frequently are covered under this policy.
Stop Payment Instructions
You can ask the bank to stop payment on a cheque:
- Through a written request
- Via Internet Banking, YONO app
- No charges if you cancel a cheque due to a writing error
The bank will stop payment if the cheque hasn’t already been cleared.
What About Old, Non-CTS Cheques?
Cheques that do not follow CTS-2010 standards are no longer valid in clearing. They:
- Should be surrendered to the bank
- Can only be encashed at home branch (if allowed)
- Are not accepted in regular clearing systems since 01 Jan 2019
Cheque Collection Policy
The bank’s cheque collection policy includes:
- Immediate credit for local or outstation cheques
- Time frames for collection and clearance
- Interest if there’s a delay in clearing
- Measures to protect small depositors
- Transparency about collection charges and timelines
Frequently Asked Questions (FAQs) on Multi City Cheques (MCC)
1. What is a Multi City Cheque (MCC)?
A Multi City Cheque is a cheque that can be deposited or encashed at any branch of the issuing bank across India, not just the home branch. These cheques carry the line “Payable at par at all branches”.
2. Are Multi City Cheques valid everywhere in India?
Yes. MCCs are valid at all branches of the issuing bank across India, thanks to the Core Banking System (CBS) and CTS-2010 standards.
3. What is the limit of Multi City Cheques at non-home branches?
- Savings Account (Regular customers): up to ₹10 lakh
- Savings Account (HNI/NRI): up to ₹50 lakh
- Current Account (Corporate/Govt/Personal): up to ₹1 crore (sometimes unlimited with special arrangements)
- Cash Credit Account: up to ₹50 lakh
4. Can I withdraw cash with a Multi City Cheque at a non-home branch?
Yes, but there are limits:
- Personal customers: ₹5,000 (self) and ₹50,000 (third-party)
- SME accounts: up to ₹2 lakh (third-party only)
- Agriculture accounts (KCC cheques): up to ₹1 lakh (third-party only)
For most corporate cheques, cash withdrawal at non-home branches is not allowed.
5. What is the Positive Pay System (PPS) in cheques?
The Positive Pay System (PPS) was introduced by RBI in 2021 to reduce fraud. The issuer submits cheque details (amount, date, payee name) to the bank in advance. When the cheque is presented, the bank cross-verifies the details. Any mismatch results in rejection.
6. Are old non-CTS cheques still valid?
No. Non-CTS cheques are not valid in clearing after January 2019. Customers must use only CTS-2010 compliant cheques.
7. What are the security features of Multi City Cheques?
MCCs follow CTS-2010 standards and include features like watermark, VOID pantograph, micro lettering, UV logo, fugitive ink, reverse-printed account number, and random alphanumeric codes. These prevent fraud and tampering.
8. What happens if my cheque bounces (dishonour)?
A cheque may bounce due to insufficient funds, signature mismatch, expired date, or overwriting. Frequent dishonours can lead to restrictions on your account, withdrawal of cheque facility, and negative impact on your financial reputation.
9. Can I stop the payment of a cheque?
Yes, you can request stop-payment via:
- Bank branch (written request)
- Internet Banking
- Mobile apps like SBI YONO
👉 No charges if the cheque is stopped due to writing mistakes.
10. How can I apply for a Multi City Cheque book?
You can request an MCC cheque book through:
- Your bank branch
- Internet Banking
- Mobile apps (like SBI YONO)