If you have an account with state-run lender Punjab National Bank (PNB) and deal frequently in cheques then you should pay heed to this news piece promptly. As customers who still possess non-CTS compliant cheques will not be able to make payments via such cheques after December 31, 2018.
The apex bank RBI has asked the banking fraternity to do away with non-CTS cheques as the newly introduced CTS-compliant cheques are safe and easier when it comes to making payments using them.
So, the bank has asked its customers to get their non-CTS compliant cheque book replaced immediately. This is due to the fact that these cheques will not be honored for clearance in the system with effect from January next year.
Banks have been directed by the RBI to issue only CTS-2010 standard cheques to their customers. Also, the central bank has said, "Banks shall not charge their savings bank account customers for issuance of CTS-2010 standard cheques when they are issued for the first time".
The guidelines for issuance of CTS-2010 standard cheques were notified way back in the year 2010.
It is worth mentioning that the Cheque Truncation System or CTS is a process to stop flow of physical cheque, wherein an electronic image of the cheque is presented as and when it comes for clearance. The process does away with the cost involved in movement of physical cheques as well as aims at providing better service to customers by reducing clearing time.
With PTI Inputs