News regarding new chequebook rules from January is false

The Reserve Bank of India (RBI) on Saturday dismissed messages circulating on social media as baseless and misleading, which claimed that new chequebooks with updated security standards would come into effect from 1 January, 2027. The central bank clarified that there will be no changes made to the standard chequebooks currently used under the Cheque Truncation System (CTS).

According to an NDTV report, messages were going viral on social media claiming that the standard chequebooks currently in use under the Cheque Truncation System (CTS) would change from 31 December, 2026. These messages further stated that chequebooks with new security standards would be introduced from 1 January, 2027. Clarifying this matter via a post on the social media platform X, the RBI stated, "RBI is not implementing any such measures in respect of CTS chequebooks."

The bank has termed this message baseless and misleading. The RBI has requested the general public to rely only on information published by the central bank from time to time on such subjects. The bank clarified that there is no truth to this information spreading on social media.

Additionally, the RBI has also proposed to make documentation requirements for agricultural loans stricter and to change the calculation of Priority Sector Lending (PSL). This proposal also includes the treatment of certain types of trade-credit exposure. This proposal is part of the 'Draft Reserve Bank of India (Priority Sector Lending - Targets and Classification) Directions, 2026', the main objective of which is to strengthen oversight on agricultural credit. Comments on this draft have been invited until 26 November.

Under the proposed standards, banks will have to maintain details such as the location of agricultural land, crops being grown, and hypothecation of crops while verifying agricultural loans taken against gold. The RBI has also proposed that the amount of sanctioned loan should be based on the assessment of the applicable scale of finance and credit requirements for agricultural activities, rather than being based solely on the type or value of the collateral. Banks will also have to maintain records of field visits by officers to monitor the end-use of the loan. For farm labourers and sharecroppers who do not have land records or lease deeds, it will become necessary to maintain alternative verifiable documents to establish eligibility for PSL classification.

The Reserve Bank of India is India's central bank that regulates the country's financial system and is responsible for maintaining financial stability. It formulates the country's monetary policies and acts as the regulator of the banking sector.