CTS-2010 Compliance for cheque

Do you know about CTS – 2010 compliance..?

The 31st July, 2013 is approaching. Check your bank cheque book once, whether it is CTS-2010 compliant or not.  CTS stand for Cheque Truncation System.  From August 1, 2013 CTS – 2010 would be implemented. The existing cheque without CTS-2010 compliant would be invalid from 1st August, 2013. RBI has issued following guideline about CTS compliance:

·         Cheque printer details along with CTS-2010 mentioned (on the extreme left hand side, near the side where you detach a cheque leaf from the cheque book)

·         Bank’s logo and details

·         VOID pantograph (just below where the account number is mentioned)

·         Rupee symbol " " (where the amount in figures needs to be written)

·         Signature space indicator mentioning "please sign above".

If your cheque book does not reflect the aforementioned details you must obtain a new CTS complied cheque book at the earliest, and surrender the non-compliant one to the bank.

The customer, who have deposited non-CTS cheques as post-dated cheques (PDCs) for EMIs or SIP purposes to a finance company, MF houses or banks will have to replace these with the compliant ones for installment after 31 July. The non-compliant cheques will not be honoured by banks and will amount to non-payment and default on the part of the customer.

These guidelines has issued by RBI for better service to customers. Now onwards the physical movement of cheque will stop and only scan image with some information would be used for clearing the cheque. The new system certainly will speed up cheque clearing process and reduce the clearing related fraud. After implementation the CTS compliance, the cost would also reduce.

For more detail about any other query related investment, you can contact me through my email.

Warm regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com