Cheque books and passbooks in digital banking: do you still need them?

Digital banking has replaced many paper processes. Yet customers still wonder whether they need a cheque book or passbook. The answer depends on their needs.

Passbook vs e-statements

Many digital accounts provide e-statements instead of passbooks. E-statements can be downloaded anytime and are accepted for most purposes. Some traditional accounts still issue passbooks.

When cheques are still used

• Rent or security deposits for some landlords
• Some government or institutional payments
• Post-dated cheques for loans in some cases
• As a "cancelled cheque" for verification

Digital alternatives

• UPI, NEFT and IMPS for most payments
• E-statements or bank letters instead of passbooks
• Bank account verification through penny drop, instead of cancelled cheques, in many processes

Charges

Some banks charge for cheque books beyond a free limit. Customers should check.

Cheque safety

• Never sign blank cheques.
• Write amounts clearly and draw lines after them.
• Keep the cheque book secure.
• Use positive pay or similar confirmation systems for high-value cheques where available.

A short example

Kunal's digital account doesn't include a cheque book by default. When his landlord asks for a security deposit cheque, he requests a small cheque book through the app for a fee. For everything else, he uses UPI and NEFT.

Questions customers ask

"Can I get a cancelled cheque from a digital account?"

If you have a cheque book; otherwise, a bank letter or statement may work for many verifications.

"Is an e-statement valid proof?"

It's widely accepted, though some institutions may ask for bank-certified documents.

Key points to remember

• Many digital accounts use e-statements instead of passbooks.
• Cheques are still needed for some payments.
• Penny drop often replaces cancelled cheques.
• Cheque books may carry charges.
• Follow cheque safety practices.

Summary

Most daily banking is digital now, but cheques still have a place. Help customers understand when they'll need one. Read NEFT, RTGS, IMPS and UPI differences.

Cheque bounce awareness

A cheque returned for insufficient funds can have serious consequences, including penalties and possible legal action in certain cases. Customers who issue cheques should always ensure enough balance on the presentation date, especially for post-dated cheques.

Stopping a cheque

If a cheque is lost or issued by mistake, customers can usually request a stop payment through the app, net banking or branch. There may be a charge. Acting quickly matters.

Storing cheque books safely

Keep cheque books in a secure place, track which leaves have been used and destroy unused books when closing an account. A stolen cheque book can be misused with forged signatures.

When a passbook helps

Some customers, especially seniors, prefer passbooks because they're easy to read without an app. If a bank offers passbook updates at branches or kiosks, it can be a comfortable option for them.

The digital record advantage

E-statements can be searched, downloaded and shared instantly for loan applications or tax filing. Encourage customers to save annual statements in a dedicated folder for easy access.

In one line

Use digital payments for daily needs, keep a small cheque book for special cases, and treat every signed cheque like cash.

Questions customers ask about cheques

"How long is a cheque valid?"

Cheques are generally valid for a limited period from the date written on them; check current rules or ask the bank.