December 08, 2012

CTS cheque leaves from July 1st ,2013?

Reserve Bank of India (RBI) in its Circular dated September 03, 2012 has instructed all banks to have uniform safety features in their cheque leaves issued to customers. It is called 'Standardisation and Enhancement of Security Features in Cheque Forms'.

As per the said guidelines, banks have been advised to issue only 'CTS 2010' standard multicity/Payable at Par cheques to their account holders.

Effective July1st, 2013 usage of non 'CTS 2010' standard cheques will not be accepted by trades or for purchases, investment purposes etc.

How to identify a CTS '2010' compliant cheque :

1 Bank's logo printed with invisible ink
2 Void pantograph
3 Cheque printer details/CTS- 2010
4 Rupee symbol
5 Signature Space Indicator

You may also consult with your bank for more clarification in this regard.

In case you have submitted post-dated non-CTS 2010 standard cheques dated 1st July 2013 onwards for your future instalment of loans or Systematic Investment Plan (SIP) investments with any RD, Mutual Fund you will have to replace them with CTS-2010 standard cheques before 30/06/2013.

The stronger security features in the CTS-2010 cheque are for enhancing security of transactions.It is easy for the presenting banks to confirm the genuineness of the drawee banks' instruments. Also standardisation of security features would act as a deterrent against frauds and enhance customer safety.

So be ready to replace all the unused cheque leaves with the latest one !

Important Note: The old cheques are acceptable only up to 30/06/2013 according to the  notifications so far. Will they extent it further? Let us wait and watch!

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