Cts2010 compliant cheque will have the printer details along with the text cts2010 printed on the extreme left hand of the cheque leaf. We would like to inform you that we have been issuing cts2010 compliant cheque books since april 2011. For the uninitiated, cts transforms cheque clearing from a. Banks will usually reject cheques that are more than six months old but, in fact, its at their discretion.
Offering cheque truncation system cts is a step in this direction. If you have ordered your cheque books recently, say, a month ago, you may already have the new cheque leaves with you. If you lose the cheque book, you know what will happen next. It is now mandatory for banks to strictly issue standardised and enhanced new format of cheques called cts 2010. The benchmark prescriptions are collectively known as cts2010 standard. It is illegal to issue a blank or post dated cheque. Non cts cheque bounce and validity in 2016 answered by expert chequebounce lawyer. Also all the current circulated cheques will be replaced within 31st march, 20. So it is necessary for all to understand how your new cheque format looks like. Everything you need to know about cts 2010 cheques banking basics hdfc bank.
Punjab national bank pnb has asked its customers to get their noncts compliant cheques replaced as these instruments will not be accepted for clearance in the banking system from january. Cheque book issued prior to december 2010 is noncts compliant savings treasure accounts. Cheque truncation system cts is a cheque clearing system undertaken by the reserve bank of india rbi for quicker cheque clearance. Sign the cheque above your name, which is printed on the cheque. If the above letters are present, your cheque book is cts 2010 compliant 5. Under the banking tab, click on the link other banking services request cheque. Cts is based on a cheque truncation or online imagebased cheque clearing system where cheque images and magnetic ink character recognition micr data are captured at the collecting bank branch and transmitted.
For the past 6 months, rbi has been announcing several times saying noncts2010 compliant cheques would be valid up to specific period. Customers should make note of the above guideline while depositing the cheque as the noncts 2010 instruments will be credited debited to accounts as per the schedule mentioned above. Cheque book issued prior to december 2010 is noncts compliant. Noncts cheques may face further clearance delay from may 1. Cheques not complying with cts 2010 standards will be cleared at less frequent intervals i. This new cheque clearing system will be applicable from 1 st january,20. I had to give the first page of my old cheque book and they took my request. You must obtain a cts2010 compliant cheque book on or before 31st march 20. Cheque truncation system cts cheque printing software. In case your cheque is not cts 2010 compliant, you can request for a new cheque book by logging in to citibank online. Cheque books of these banks valid only till december 31. View image above if your cheque is not of cts 2010 standards then you need to apply for new cheque book of this standard and surrender the older cheques. They can choose to cash it if they want to so dont assume that if you wrote a cheque to someone over six months ago that youre off the hook from paying it.
Sep 05, 2018 cheque truncation system reserve bank of india. If your cheque book has been indented prior to 1st january 2012, you are requested to indent for new cheque book at the earliest to avoid any inconvenience. All banks providing cheque facility to their customers have been advised to issue only cts 2010 standard cheques. You need to apply in your bank for the same and it is available free of cost. You can continue to use the same and there is no further action required. To help you identify whether the cheque book you currently hold is cts compliant or not, you can look for. In case if your cts 2010 cheque book, you must obtain a new cts complied cheque book, and surrender the noncompliant one to the bank. Go to your bank branch and request for a new cheque book or order one. Noncts cheques may face further clearance delay from may. It is now mandatory for banks to strictly issue standardised and enhanced new format of cheques called cts2010. Simple guide for customers to identify if their cheques are cts. This means the older noncts 2010 cheques will continue to be valid till march. Its mentioned on the side line of the cheque as cts 2010 to identify whether its cts 2010 standards or not.
The number 2010 in cts2010 is because the guidelines for cts came up in the year 2010. Will my old cheques that are not cts2010 still work. Sbi has said that the cheque books of these banks will not be valid after december 31. It is now mandatory for banks to strictly issue standardized and enhanced new format of cheques called cts2010. You can now print your cheque in cts 2010 with out any worries. The clearing timings of noncts session are covered in annex xb 1. With this, the bank will not accept all noncts cheques that you issue from your existing cheque book and those will be out of circulation from december 31, 2012. Unless most means 95% or more, i suspect that the sheer volumes. Sbi, hdfc, pnb, icici, bob, other bank customers these to become invalid noncts cheques used by customers of all banks including state bank of india sbi, hdfc bank, icici bank, bank of baroda, punjab national bank and others will become invalid from january 1. All the cts2010 cheque should be clean, image friendly and over writing is not accepted because the cheque will be cleared through image based clearing system. Yes, as per the new guidelines provided by rbi reserve bank of india all indian banks should follow cts 2010 cheque formats, and virtual splat has already taken care about this rule.
Thus, it is considered as the major landmark in the indian banking industry. Indian bank charges rupees thirty for one cts2010 cheque book, from customers. Noncts compliant cheques shall not be processed for clearing with effect from january 1, 2019, pnb said in a notification. As the term proposes, truncation is the course of discontinuing the flow of the physical cheque in its way of clearing. For example, cheques of all banks would have the watermark at the. Cheque truncation system cts explained bankexamstoday. Cheque truncation system new benchmark for cheques in banks. Printing of mccs is now fully in conformity with cts 2010 standards. Also, please note that rbi has advised all banks holding postdated emi cheques to arrange for replacement of noncts2010 standard cheques with cts2010 standard cheques. Security features of cheque rbi notice created date. However, banks may continue to follow their existing policy regarding cheque book issuance for additional issuance of cheques, in adherence to their accepted fair practices code. Instead of this an electronic image of the cheque is transferred with vital essential data.
Also already circulated cheques will be replaced within 31st december 2012. Check your current cheque book is it valid new cts. All the 14 lcpcs are printing and issuing mccs in respect of branches linked to them. Here it seems you are asking about a cheque which is signed but not dated and no other details are filled in. A copy of cheque, cts 2010 compliant may please be used in explaining the requirements to be filled for the cheque leaves that can be used for transaction from january 01, 20 onwards. If you have any postdated cheque for a datemonth after 1 january 20, ask the personinstitution concerned to issue a cts 2010 cheque, as the old one will not be valid after 31 december. Cheque truncation system cts, an online imagebased clearing system for faster clearing of cheques in india.
Banks shall not charge their savings bank account customers for issuance of cts2010 standard cheques when they are issued for the first time. If you are still in possession of nonctc cheque books, then it is in your own interest to get those replaced with cts 2010 standard cheque books latest by december 31. Noncts cheques valid till 31 july rbi the rbi has also said the system of post dated cheques and payment via emi, in either the old or new format. When a cheque is not crossed, it is known as an open cheque or an uncrossed cheque. My cheque book is not cts2010 compliant, what to do. Cheque issuing banks shall make all efforts to withdraw the noncts2010 standard cheques in circulation before the extended timeline of 31 july. If your cheques are not cts 2010 complaint, there can realisation delays, as they will be cleared at less frequent intervals. Jan 12, 20 8 boxes to write the date in ddmmyyy format. If you are still in possession of nonctc cheque books, then it is in your own interest to get those replaced with cts2010 standard cheque. A copy of cheque, cts2010 compliant may please be used in explaining the requirements to be filled for the cheque leaves that can be used for transaction from january 01, 20 onwards. As per rbi guidelines, noncts2010 standard compliant cheques will be accepted for clearing up to july 31, 20. Cheque truncation system cts is a cheque clearing system undertaken by reserve bank of india rbi that aims at reducing the time involved in cheque clearing to one day. Cheque truncation means stopping the flow of the physical cheques issued by a.
As per rbi guidelines, after march 31, 20, noncts2010 standard compliant cheques will still be accepted for clearing but will be cleared at less frequent intervals. Non cts cheque book issue branch can pay non cts cheque amount. Enhancement of security features in cheque forms migrating to cts 2010 standards as covered in annex xa and other circulars from time to time. Procedural guidelines for cheque truncation system cts.
In case your cheque is not cts2010 compliant, you can request for a new cheque book by logging in to citibank online. Payees are unable to follow up with payers to get new cheques before the deadline elapses. Everything you need to know about cts 2010 cheques banking. Latest newsdeadline of 31st december 2012 is extended to 31st march. Everything you need to know about cts 2010 cheques. How to identify my cheque book cts2010 standard compliant. Cheques not complying with cts2010 standards will be cleared at less frequent intervals i. These are a few things to keep in mind while write a cheque. These cheques may be cashed at any bank and the payment of these. Get your noncts cheque book replaced immediately, it said. The cheque truncation system or cts is the cheque clearance system introduced by rbi to fasten up the clearing of cheques. Just check, whether your existing cheque book is cts compliant or you need to get a new cts complaint cheque book issued before 31st december 2012. Cts 2010 compliant cheques latest breaking news, pictures, videos, and special reports from the economic times.
The branch address and ifsc code should be on the top left side of the cheque 2. Latest news deadline of 31st december 2012 is extended to 31st march. Cts2010 is a benchmark for standardization of cheques issued by banks across the country. The number of cheque leaves in the multi city payable at par cts2010 standard cheque books will be as under. Rbi guidelines on standardization of security features for cheque leaves, referred to as cts2010 are aimed at enhancing customer safety and facilitating easier. Its all about cts 2010 new cheque truncation system. The main feature of cts2010 cheques is that a cheque can be cleared electronically. Incase the cheque book you currently have is not cts2010 compliant as per the above features we request you to immediately order a new cheque book. All banks providing cheque facility to their customers have been advised to issue only cts2010 standard cheques.
Please look for the letters cts 2010 printed perpendicularly on the cheque leaf near the perforation on the left side as shown in the image. Cheque book issued till 04 november 2012 is noncts compliant is my cheque cts compliant. Cheque books issued, by the bank, on or after 1st january 2012 are cts 2010 standard compliant. Your old cheque leaves may not be valid after march 31, 20, as the rbi has instructed all banks to implement the cheque truncation system. And never, never sign blank cheques in the cheque book. Therefore, we recommend you to place a request for a new cheque book. Can you please mail me a scanned copy of the latest cheque leaf that is compliant with cts 2010. Identify whether your existing bank accounts cheque books are cts2010 compliant request for a new cheque book, if required. Refer to section 6 of negotiable instruments act and s. In this system, instead of producing the physical cheques to the payee bank, just the electronic image of the cheque along with the micr code and other cheque credentials are transmitted to the drawee bank for the payment through a.
Does your software supports cts 2010 cheque formats. Noncts2010 complaint cheques valid up to jul20how does this impact you. At the corner of the cheque you will find the cts2010 printed. Cheque truncation system cts or imagebased clearing system ics, in india, is a project of the reserve bank of india rbi, commenced in 2010, for faster clearing of cheques. How to identify my cheque book cts2010 standard compliant or not.