Cheque truncation system cts is the system in which the flow of physical movement of the cheque will be eliminated in the cheque clearing process. 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. 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. Instead, an electronic image of the cheque will be sent to paying branch through the clearing house along with relevant information like data on the micr band, date of presentation. Cheque book definition and meaning collins english dictionary. 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. Cheque books of these banks valid only till december 31. Cts 2010 compliant cheque will have the printer details along with the text cts 2010 printed on the extreme left hand of the cheque leaf. Dec 16, 2012 how to identify a cts 2010 compliant cheque. Photo copy of a valid cts compliant cheque will serve the purpose better for information to general public. Apr 29, 2014 non cts cheques may face further clearance delay from may 1. 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 clearing timings of noncts session are covered in annex xb 1. A cheque book is a book of cheques which your bank gives you so that you can pay for.
The cheque truncation system cts is a process of stopping flow of physical cheque in which an electronic image of the instrument is presented when it comes. As per the revised guidelines of rbi the validity of noncts compliant cheques have been extended till 31st a july 20. Sbi, hdfc, pnb, icici, bob, other bank customers these to become invalid non cts 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. Enhancement of security features in cheque forms migrating to cts 2010 standards as covered in annex xa and other circulars from time to time. It is used by individuals, businesses, corporate and others to transact for making and receiving payment. Get your non cts cheque book replaced immediately, it said. Instead of this an electronic image of the cheque is transferred with vital essential data. Now, old cheque is valid up to july 31 goodreturns. No longer will you be able to use non cts cheques and sbi customers will not be able to do so from december 12, while other bank customers will not be able to use non cts cheques. The cheque truncation system or cts is the cheque clearance system introduced by rbi to fasten up the clearing of cheques. Nov 16, 2017 sbi has said that the cheque books of these banks will not be valid after december 31. Oct 17, 2017 no any cheque that is a non cts cheque will be returned by the bank as not a valid instrument under ni act. Dec 04, 2017 meaning of cheque different types of cheque. Will the banks automatically send new cheque books or one has to ask for it.
You need to apply in your bank for the same and it is available free of cost. As the term proposes, truncation is the course of discontinuing the flow of the physical cheque in its way of clearing. So it is necessary for all to understand how your new cheque format looks like. Non cts cheque bounce and validity in 2016 answered by expert cheque bounce lawyer. 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. However, account holders can instruct the bank to shorten or lengthen the cheques expiry and actual the duration for the cheques validity will be printed on the cheque itself. Request you to make a note that non cts compliant cheques would not be accepted by banks for clearing post 31 july 20.
You will not be able to use your old cheque books starting 1 january 2014. Incase the cheque book you currently have is not cts 2010 compliant as per the above features we request you to immediately order a new cheque book. Procedural guidelines for cheque truncation system cts. This is what you should do an old rbi rule will come into force after january 1st. 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.
We would like to inform you that we have been issuing cts 2010 compliant cheque books since april 2011. Noncts cheques may face further clearance delay from may 1. Banks would do better if they display new cheque format in their branch. Please look for the letters cts2010 printed perpendicularly on the cheque leaf near the perforation on the left side as shown in the image. Also already circulated cheques will be replaced within 31st december 2012. The reserve bank of india has extended validity of old cheque book non cts 2010 standard up to july 31, 20. Non cts compliant cheques shall not be processed for clearing with effect from january 1, 2019, pnb said in a notification. In case if your cts 2010 cheque book, you must obtain a new cts complied cheque book, and surrender the. Cheque truncation system cts is a cheque clearing system undertaken by the reserve bank of india rbi for quicker cheque clearance. Many banks have still not asked their customers to surrender the non cts 2010 cheque books to reflect the change, a crosssection. Check your current cheque book is it valid new cts. Thus, it is considered as the major landmark in the indian banking industry.
What is a cheque definition, types of cheques and features. No any cheque that is a non cts cheque will be returned by the bank as not a valid instrument under ni act. I had to give the first page of my old cheque book and they took my request. Your cheques can be permanently banned after january 1, 2019. International helpline 91446685 4555 or your relationship manager to request for a new cheque book. 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. Noncts cheques may face further clearance delay from may. It is illegal to issue a blank or post dated cheque. Everything you need to know about cts 2010 cheques banking basics hdfc bank. 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. After six months or when the cheque expires, you will not be able to cash your cheque successfully. Here it seems you are asking about a cheque which is signed but not dated and no other details are filled in.
My cheque book is not cts 2010 compliant, what to do. You must obtain a cts 2010 compliant cheque book on or before 31st march 20. What is cheque defined about alteration and material alteration cts cheques. Cheque truncation system is an arrangement which facilitates the electronic processing of a cheque with the use of magnetic ink character reader micr data and the scanned image of the instrument without involving any physical exchange or movement of the financial instrument. Non cts cheques may face further clearance delay from may 1. Cts has been implemented in new delhi, chennai and mumbai with effect from february 1, 2008, september 24, 2011 and april 27, 20 respectively. Cheque books of these banks valid only till december 31, 2017.
If you have ordered your cheque books recently, say, a month ago, you may already have the new cheque leaves with you. Jan 08, 2017 this video explains the validity period of cheque and amount of cheque. Cheque truncation system cts cheque printing software. Sep 14, 2015 the number 2010 in cts2010 is because the guidelines for cts came up in the year 2010. What should i do if i receive a non cts compliant cheque. Everything you need to know about cts 2010 cheques. Noncts cheques to become invalid from january 1 goodreturns. If your cheques are not cts 2010 complaint, there can realisation delays, as. A new circular, dated 26 june 2018, has been issued by reserve bank of indiarbi to all the banks regarding processing of non cts cheques. Cheque truncation system cts, an online imagebased clearing system for faster clearing of cheques in india. You can also request for a new cheque book through dbs atm or internet banking.
It looks all the current cheque books will have to be replaced. In case your cheque is not cts2010 compliant, you can request for a new cheque book by logging in to citibank online. After migration of the entire cheque volume from micr system to cts, the traditional micrbased cheque processing has been discontinued across the country. If you have availed a home loan and or auto loan and issued postdated cheques instead of opting for direct debit, then you will be required to replace such. All banks that issue sgd cheques and local usd cheques are on cts. Meaning, pronunciation, translations and examples log in dictionary. Sep 03, 2012 it is now mandatory for banks to strictly issue standardised and enhanced new format of cheques called cts 2010. Cheque is an instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument. Cheque issuing banks shall make all efforts to withdraw the non cts 2010 standard cheques in circulation before the. You should ask for a new cts compliant cheque from the drawer. Mar 20, 20 non cts 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, will be banned from now wherever electronic.
If the above letters are present, your cheque book is cts2010 compliant 5. 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. Noncts cheques valid till 31 july rbi india infoline. Rbis new circular for noncts cheques june 2018 youths area.
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