The RBI further said that NBFCs are, required to ensure the replacement of Non-CTS-2010 standard compliant cheques with CTS-2010 standard compliant cheques before December 31, 2012.
The move is aimed to standardize and enhance the security of cheques and conforming to Cheque Truncation System(CTS) standards.
Click here to know more about CTS 2010
These include provision of mandatory minimum security features on cheque forms like quality of paper, watermark, bank's logo in invisible ink, void pantograph, etc., and standardisation of field placements on cheques, the RBI said in the press release.
Earlier, RBI in a circular had asked banks to arrange to withdraw the non-CTS-2010 Standard cheques before December 31, 2012 by creating awareness among customers through SMS alerts, letters, display boards in branches/ATMs, log-on message in internet banking, notification on the web-site etc.
Banks holding post-dated EMI cheques (received either on their own behalf or on behalf of their NBFC clients) have to arrange for the replacement of non-CTS-2010 standard cheques with CTS-2010 standard cheques before December 31, 2012.
So, be careful when you receive or issue a cheque - if it's not CTS 2010 standards banks may not accept it from Jan 1, 2013.