A multicity cheque, also called an at-par or payable-at-par cheque, is a cheque that every branch of the issuing bank treats as if it were drawn on itself. It can be cleared or paid anywhere in the country as a local cheque, with no outstation collection charges and no wait for an outstation cheque. You'll usually see the words "Payable at par at all branches of …" printed on the leaf.

In India today, almost every cheque is effectively at par. The RBI told core-banking banks in 2012 to issue only multicity CTS-2010 cheques to eligible customers, and since 2023 the whole country clears on one national CTS grid. The term still matters in a few situations, covered below.

What "payable at par" meant, and why it was needed

Before core banking and image-based clearing, a cheque belonged to its home branch. If you gave a cheque on a Jaipur branch to a supplier in Chennai, the supplier's bank had to send it to Jaipur for collection. That took days, sometimes weeks, and the collecting bank charged for it. Suppliers learned to ask for a demand draft instead, or to insist on a "local cheque".

Once a bank's branches all ran on one core banking system, any branch could see any account and pay any cheque. A cheque marked "payable at par at all branches" told the collecting bank it could present the cheque at the nearest branch of the drawee bank, as a local item. The outstation problem went away for that cheque.

What the RBI required

The RBI first asked core-banking (CBS) banks in October 2007 to offer at-par cheques to eligible customers who asked for them. Some banks then capped their value, offered them only to high-value customers, or charged "intersol" fees when they were cleared away from the base branch. So the RBI went further. Its circular RBI/2012-13/163 of 10 August 2012 directed that:

  • All CBS-enabled banks issue only "payable at par" / multicity CTS-2010 standard cheques to all eligible customers, with appropriate risk management.
  • Customers are not charged extra when such cheques are cleared at a location other than the base branch.
  • The inconsistent practices (value caps, intersol charges) stop.

"Eligible" is left to each bank's risk policy. In practice, standard cheque books for savings and current accounts at CBS banks are multicity.

How CTS made the question mostly moot

The Cheque Truncation System finished the job. CTS clears cheques by image, and within a CTS grid every cheque is cleared as a local cheque, wherever the drawee branch is. India started with three regional grids (New Delhi, Chennai, Mumbai). According to the RBI's FAQs on cheque clearing, they were merged into a single National Grid, run by the National Grid Clearing House in Chennai, from 13 October 2023.

So a CTS-2010 cheque drawn on any connected branch in India now clears through the same national system, on the same continuous-clearing timeline (see cheque clearing time in India). The "outstation cheque" has, for clearing purposes, almost disappeared.

Charges

  • Clearing a multicity cheque in another city: under the 2012 circular, no extra charge.
  • Collecting cheques generally: the RBI FAQs say there's no service charge for savings account customers on cheques up to and including ₹1,00,000. Above that, and for other account types, charges are set by each bank's Cheque Collection Policy.
  • Cash over the counter at a non-home branch: this is a different matter from clearing. Banks set their own limits and charges for cash withdrawals at a branch other than your home branch, especially by third parties. Check your bank's schedule of charges.
  • Returned cheques carry their own fees whatever kind of cheque it is (see cheque return charges).

When it still matters

"Is this cheque at par?" is rarely the right question now, but it's worth asking in a few cases:

  • Cheques from smaller co-operative banks. Some smaller banks issue cheques through an arrangement with a larger sponsor bank, and the leaf may say it is payable at par at that sponsor bank's branches. Clearing still works through CTS, but if you want to cash such a cheque over the counter, it has to be at the bank named on it.
  • Encashing a bearer or self cheque away from home. A multicity cheque lets you or a payee draw cash at another branch of your bank, within that bank's limits. A self cheque or bearer cheque presented at a distant branch is where "at all branches" earns its keep.
  • Very old cheque books. A pre-CTS book may not be multicity, and non-CTS cheques can't be presented in CTS at all. Destroy old books and ask for a fresh one.
  • Cheques drawn on banks abroad. Multicity is a domestic idea. A cheque on a foreign bank is always sent for collection.
  • Other countries. Gulf banks clear cheques through national clearing systems, so the concept rarely comes up there. See the UAE cheque guide.

How to tell whether your cheque is multicity

  • Look for the words "Payable at par at all branches" (or similar) printed near the bank's name or the payee line.
  • Check for the "CTS-2010" marking on the leaf. All current Indian cheque stock carries it.
  • If in doubt, ask your branch. They'll know whether your book was issued as multicity.

For anyone printing cheques: the "payable at par" wording is pre-printed by the bank, like the MICR band. Nothing you print changes it. Keep your printed fields clear of it so the image stays readable.