Non CTS-2010 cheques will not be allowed from Jan 1, 2013

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    Non CTS-2010 cheques will not be allowed from Jan 1, 2013
    The Reserve Bank of India has advised all banks including NBFCs to adhere to the "CTS 2010" standard as they accept post dated cheques from their customers for future EMI payments. Some of these instruments may not be compliant with the CTS-2010 standard.
     

    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.

    GoodReturns.in

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