How to identify a new cheque leaf? Benefits of new CTS -2010

In a move to increase speedy collection of crossed cheques, the Reserve Bank of India has come up with new CTS cheques. Individuals have to now confirm whether they have a new format of cheques or have to apply for a new one.

Few noticeable difference are:

• Banks logo will be printed with invisible ink
• Water mark can be seen below account number
• At the corner of the cheque you will find the CTS-2010 printed
• Can see Rs symbol on the leaf
• Signature place is made more visible and clear.
• Advantages to customers

The benefits from CTS could be summarized as follows:

• Speeds up collection
• No geographical restrictions as to jurisdiction
• Operational efficiency for banks and customers alike
• Reduction in operational risk
• Minimizes clearing frauds
• Minimizes cost of collection of cheques
• No fear of losing cheque in transit
• No wastage of manpower, money and time (As there is no physical movement of cheque)
• Operational efficiency for banks and customers alike
• No geographical restrictions as to jurisdiction

CTS brings elegance to the entire activity of cheque processing and clearing. Cheque frauds can be greatly reduced with introduction of minimum security features prescribed under CTS Standards 2010, such as embedded verifiable features such as bar-codes, encrypted codes, logos, watermarks, holograms, etc., for early interception of altered / forged instruments. Obviating the need to move the physical cheques is extremely beneficial in terms of cost and time savings.

How about alteration/correction on the cheque

The prescription on prohibiting alterations / corrections on cheques has been introduced to curtail cheque frauds on account of alterations in the various fields of cheques and to give protection to customers as well as banks.

No changes / corrections can be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee's name, courtesy amount (amount in figures) or legal amount (amount in words), fresh cheque leaves should be used by customers.

This would help banks in identifying and controlling fraudulent alterations.

Precautions to be taken on new cheque:

• Customers should preferably use dark coloured ink while writing cheques
• Avoid any alterations / corrections thereon.
• Use a new cheque leaf may be used in the event of any alterations / corrections.
• Banks should exercise care while stamping the cheque forms, so that it does not interfere with the material portions such as date, payee's name, amount and signature.

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